---
kind: "section"
citation: "42 C.F.R. § 424.73"
title: "42"
number: "424.73"
heading: "Prohibition of assignment of claims by providers."
url: "https://uscodex.org/cfr/42/424.73"
---

# §424.73. Prohibition of assignment of claims by providers.

- (a) **Basic prohibition.** Except as specified in [paragraph (b)](#b) of this section, Medicare does not pay amounts that are due a provider to any other person under assignment, or power of attorney, or any other direct payment arrangement.
- (b) **Exceptions to the prohibition—**
  - (1) **Payment to a government agency or entity.** Subject to the requirements of the Assignment of Claims Act ([31 U.S.C. 3727](/usc/31/3727.md)), Medicare may pay a government agency or entity under an assignment by the provider.
  - (2) **Payment under assignment established by court order.** Medicare may pay under an assignment established by, or in accordance with, the order of a court of competent jurisdiction if the assignment meets the conditions set forth in [§ 424.90](/cfr/42/424.90.md).
  - (3) **Payment to an agent.** Medicare may pay an agent who furnishes billing and collection services to the provider if the following conditions are met:
    - (i) The agent receives the payment under an agency agreement with the provider;
    - (ii) The agent's compensation is not related in any way to the dollar amounts billed or collected;
    - (iii) The agent's compensation is not dependent upon the actual collection of payment;
    - (iv) The agent acts under payment disposition instructions that the provider may modify or revoke at any time; and
    - (v) **The agent, in receiving the payment, acts only on behalf of the provider.**

## Notes

### Authority

Authority: 42 U.S.C. 1302 and 1395hh.

### Source

Source: 53 FR 6634, Mar. 2, 1988, unless otherwise noted.