---
kind: "section"
citation: "42 C.F.R. § 447.271"
title: "42"
number: "447.271"
heading: "Upper limits based on customary charges."
url: "https://uscodex.org/cfr/42/447.271"
---

# §447.271. Upper limits based on customary charges.

- (a) Except as provided in [paragraph (b)](#b) of this section, the agency may not pay a provider more for inpatient hospital services under Medicaid than the provider's customary charges to the general public for the services.
- (b) The agency may pay a public provider that provides services free or at a nominal charge at the same rate that would be used if the provider charges were equal to or greater than its costs.

## Notes

### Amendments

[75 FR 73975, Nov. 30, 2010]

### Source

Source: 46 FR 47971, Sept. 30, 1981, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302, and 1396r-8, and Pub. L. 111-148.

### Source

Source: 43 FR 45253, Sept. 29, 1978, unless otherwise noted.

### Amendments

[75 FR 73975, Nov. 30, 2010]