Medicare Benefit Policy Manual (Pub. 100-02), Ch. 15 § 40.23
Organizations That Furnish Physician or Practitioner Services
40.23 - Organizations That Furnish Physician or Practitioner Services
(Rev. 1, 10-01-03)
B3-3044.23
The opt-out applies to all items or services the physician or practitioner furnishes to Medicare beneficiaries,
regardless of the location where such items or services are furnished.
Where a physician or practitioner opts out and is a member of a group practice or otherwise reassigns his or
her rights to Medicare payment to an organization, the organization may no longer bill Medicare or be paid
by Medicare for services that the physician or practitioner furnishes to Medicare beneficiaries. However, if
the physician or practitioner continues to grant the organization the right to bill and be paid for the services
the physician or practitioner furnishes to patients, the organization may bill and be paid by the beneficiary
for the services that are provided under the private contract. The decision of a physician or practitioner to
opt out of Medicare does not affect the ability of the group practice or organization to bill Medicare for the
services of physicians and practitioners who have not opted out of Medicare.
Corporations, partnerships, or other organizations that bill and are paid by Medicare for the services of
physicians or practitioners who are employees, partners, or have other arrangements that meet the Medicare
reassignment-of-payment rules cannot opt out because they are neither physicians nor practitioners. Of
course, if every physician and practitioner within a corporation, partnership, or other organization opts out,
then such corporation, partnership, or other organization would have, in effect, opted out.