Medicare Financial Management Manual (Pub. 100-06), Ch. 1 § 470.2
Principles for Sharing Costs of Physician Profiles When Used for
470.2 - Principles for Sharing Costs of Physician Profiles When Used for
Medicare and the Carriers' Regular Business - (Rev. 1, 08-30-02)
B1-4603.2
Criteria for the determination of reasonable charges for the Part B program required
carriers to secure and maintain data. These criteria also emphasize that data supporting
the customary charge of the physician are to be obtained from all sources available to the
carrier so that the customary charge will reflect the charge made generally to the
physician's patients for a particular service.
Where several programs or lines of business derive mutual benefits from the use of
physician profile data, the following principle should be observed to assure equitable
distribution of costs:
Where physician profiles established on data derived in whole or in part from the
Medicare program are used by a carrier in any other program or business, cost sharing is
required. The cost chargeable to the Medicare program will be determined by the volume
of Medicare claims processed to the total claims processed for all lines of business using
the physician profile data.
The Secretary and the Secretary's delegated subordinates have a contractual right to
information necessary to insure program continuity and to insure maximum efficiency
and effectiveness. If a change of carriers in an area were to occur, it might be necessary
to transfer to the succeeding carrier appropriate data to assure that no disruption of
reasonable charge determinations would result. Such data would be protected from
unwarranted disclosure under Administration regulations on confidentiality.