Medicare Benefit Policy Manual (Pub. 100-02), Ch. 16 § 50.3.2
Application of Exclusion to Nongovernmental Providers,
50.3.2 - Application of Exclusion to Nongovernmental Providers,
Physicians and Suppliers
(Rev. 1, 10-01-03)
A3-3153.3.B, HO-260.3.D, B3-2309.4
Payment may not be made for items or services furnished by a nongovernmental
provider, physician or supplier if the charges have been paid for by a government
program other than Medicare, or if the provider, physician, or supplier intends to look to
another government program for payment, unless the payment by the other program is
limited to the Medicare deductible and coinsurance amounts, as it is for certain
individuals covered under TRICARE/CHAMPVA. (See §50.4).
The mere fact that a nongovernmental provider receives government financing does not
mean that the items and services it furnishes are considered paid for by a governmental
entity. However, if a clinic receives government financing earmarked for particular
services to patients (e.g., in the form of a research grant), Medicare may not pay for the
same services.
If an individual has the option of receiving care free of charge at a government provider
or care which is not free at a nongovernment provider, and the individual, chooses the
latter, Medicare payment may be made for the care at the nongovernment provider.
However, items and services authorized by a Federal agency (for example, by the VA at a
nongovernmental hospital) are excluded. (See §50.3.3, below.)