Medicare Benefit Policy Manual (Pub. 100-02), Ch. 16 § 40.5
Members of Religious Orders
40.5 - Members of Religious Orders
(Rev. 1, 10-01-03)
A3-3152.E, HO-260.2.E
A legal obligation to pay exists where a religious order either pays for or furnishes
services to members of the order. Although medical services furnished in such a setting
would not ordinarily be expressed in terms of a legal obligation, the order has an
obligation to care for its members who have rendered life-long services, similar to that
existing under an employer’s prepayment plan. Thus, payment may be made for such
services whether they are furnished by the order itself or by independent sources that
customarily charge for their services.