Medicare General Information, Eligibility and Entitlement Manual (Pub. 100-01), Ch. 5 § 10.1.6
Provider Charges to Beneficiary Where Provider Customarily
10.1.6 - Provider Charges to Beneficiary Where Provider Customarily
Furnishes More Expensive Services Not Requested by Beneficiary
(Rev. 1, 09-11-02)
A provider that customarily furnishes an individual items or services that are more
expensive than the items or services determined to be necessary in the efficient delivery
of needed health services, may charge an individual entitled to benefits under Medicare
for such more expensive items or services even though not requested by the individual.
The charge, however, may not exceed the amount by which the cost of (or, if less, the
customary charges for) more expensive items or services furnished by such provider in
the second cost reporting period immediately preceding the cost reporting period in
which such charges are imposed, exceeds the applicable limit imposed under the
provisions of 42 CFR 413.30.
This charge may be made only if:
•
The A/B MAC (A) or (HHH) determines that the charges have been calculated
properly in accordance with the provisions of this regulation section;
•
The services are not emergency services as defined in §20.1 or §20.2 of this
chapter;
•
The admitting physician has no direct or indirect financial interest in such
provider;
•
CMS has provided notice to the public through notice in a newspaper of general
circulation servicing the provider's locality and such other notice as the Secretary
may require, of any charges the provider is authorized to impose on individuals
entitled to benefits under Medicare on account of costs in excess of the costs
determined to be necessary in the efficient delivery of needed health services
under Medicare; and
•
The provider has identified such charges to such individual or person acting on
his/her behalf as charges to meet the costs in excess of the costs determined to be
necessary in the efficient delivery of needed health services under Medicare.