447.362—Upper limits of payment: Nonrisk contract.
Under a nonrisk contract, Medicaid payments to the contractor may not exceed—
(a)
What Medicaid would have paid, on a fee-for-service basis, for the services actually furnished to recipients: plus
(b)
The net savings of administrative costs the Medicaid agency achieves by contracting with the plan instead of purchasing the services on a fee-for-service basis.
[48 FR 54025, Nov. 30, 1983]