US · guidance
CMS Pub. 100-16, ch. 4, § 90.3.2
When the Significant Cost Criterion is Met
Prior to the adjustment of the annual MA capitation rate, if CMS determines and
announces that an individual NCD item, service or legislative change in benefits does
meet a criterion for significant cost, then plans are not required to assume risk for the
costs of that service or benefit until the contract year for which payments are
appropriately adjusted to take into account the significant cost of the service or benefit.
However, a plan must pay for the following:
• Diagnostic services related to the NCD item, service, or legislative change in benefits
and most follow-up services related to the NCD item, service, or legislative change
(42 CFR § 422.109(c)(2)(i),(ii));
• NCD items, services, or legislative change to benefits that are already included in the
plan’s benefit package either as original Medicare benefits or supplemental benefits.
Although the item or service may not be specifically included in the services MAOs must
cover under their contract with CMS, MAOs must still provide access to the NCD item or
service by furnishing or arranging for the service.
The MACs are responsible for reimbursements for NCD items, services, or legislative
changes that are not the legal obligation of the MAO.
History
(Rev. 120, Issued: 01-16-15, Effective: 01-01-15, Implementation: 01-01-15)
Provenance
- Source
- cms.gov
- Retrieved
- 2026-08-25
- Edition
- iom-2026-08-25
- Content hash
1fa3edd5b1c58b1cfe7238f8481d79d3f4a0b9fa818db6026d831a17971e1d2e
The link goes to the issuing authority’s own document — the one we read to produce this record. Where a source publishes whole titles rather than sections, your browser may need a moment to jump to the provision.
Unofficial copy of government-published law, reproduced from official sources with full provenance. Not an official publication; verify against official sources before relying on it in a filing. Records in the 'guidance' corpus, and only that corpus, are sub-regulatory (interpretive guidelines, survey procedures) and are not binding law. Validity bounds follow each jurisdiction's declared temporalBasis.