Medicare Financial Management Manual (Pub. 100-06), Ch. 2 § 190.7
Subcontracts - (Rev. 2, 08-30-02)
190.7 - Subcontracts - (Rev. 2, 08-30-02)
A1-1516, B1-4516
The intermediary or carrier shall include in each of his subcontracts a provision to the
effect that the Secretary and the Comptroller General of the United States shall, until the
expiration of three years after termination of the agreement, have access to and the right
to examine any books, documents, papers and records of such subcontractors, involving
transactions related to the subcontract. The term "subcontract" as used in this paragraph,
excludes:
Purchase orders not exceeding $2,500 and
Subcontracts or purchase orders for public utility services at rates established for uniform
applicability to the general public.
The foregoing does not apply to subcontracts to perform provider audits.