---
kind: "section"
citation: "42 C.F.R. § 417.590"
title: "42"
number: "417.590"
heading: "Computation of the average of the per capita rates of payment."
url: "https://uscodex.org/cfr/42/417.590"
---

# §417.590. Computation of the average of the per capita rates of payment.

- (a) **Computation by the HMO or CMP.** As indicated in [§ 417.584(b)](/cfr/42/417.584.md?p=b), before an HMO's or CMP's contract period begins, CMS determines a per capita rate of payment for each class of the HMO's or CMP's Medicare enrollees. In order to determine the additional benefits required under [§ 417.592](/cfr/42/417.592.md), weighted averages of those per capita rates must be computed separately for enrollees entitled to Part A and Part B, and for enrollees entitled only to Part B. Except as provided in [paragraph (b)](#b) of this section, the HMO or CMP must make the computations.
- (b) **Computation by CMS.** If the HMO or CMP claims to have insufficient enrollment experience to make the computations required by [paragraph (a)](#a) of this section, and CMS agrees with the claim, CMS makes the computations, using the best available information, which may include the enrollment experience of other risk HMOs and CMPs.

## Notes

### Amendments

[58 FR 38075, July 15, 1993]

### 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

[58 FR 38075, July 15, 1993]