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US · guidance

CMS Pub. 100-16, ch. 4, § 90.3.2

When the Significant Cost Criterion is Met

activein force · 2026-08-25 – presentas-observed

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
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