---
kind: "section"
citation: "42 C.F.R. § 417.546"
title: "42"
number: "417.546"
heading: "Physicians' services and other Part B supplier services furnished under arrangements."
url: "https://uscodex.org/cfr/42/417.546"
---

# §417.546. Physicians' services and other Part B supplier services furnished under arrangements.


General principle. The amount paid by an HMO or CMP for physicians' services and other Part B supplier services furnished under arrangements is an allowable cost to the extent it is reasonable. Costs are considered reasonable if they—

- (a) Do not exceed those that a prudent and cost-conscious buyer would incur to purchase those services; and
- (b) Are comparable to costs incurred for similar services furnished by similar physicians or other suppliers in the same or a similar geographic area.

## Notes

### Amendments

[50 FR 1346, Jan. 10, 1985, as amended at 58 FR 38082, July 15, 1993; 60 FR 34887, July 5, 1995; 60 FR 45372, Aug. 31, 1995]

### Source

Source: 50 FR 1346, Jan. 10, 1985, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302 and 1395hh, and 300e, 300e-5, and 300e-9, and 31 U.S.C. 9701.

### Amendments

[50 FR 1346, Jan. 10, 1985, as amended at 58 FR 38082, July 15, 1993; 60 FR 34887, July 5, 1995; 60 FR 45372, Aug. 31, 1995]