42 CFR § 421.3 - Definitions.

---
identifier: "/us/cfr/t42/s421.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 421.3 - Definitions."
title_number: 42
title_name: "Public Health"
section_number: "421.3"
section_name: "Definitions."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "B"
subchapter_name: "MEDICARE PROGRAM"
part_number: "421"
part_name: "MEDICARE CONTRACTING"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1302 and 1395hh."
regulatory_source: "45 FR 42179, June 23, 1980, unless otherwise noted."
cfr_part: "421"
---


# 421.3 Definitions.

As used in this part—

*Intermediary* means an entity that has a contract with CMS (under statutory provisions in effect prior to October 1, 2005) to determine and make Medicare payments for Part A or Part B benefits payable on a cost basis (or under the prospective payment system for hospitals) and to perform other related functions. For purposes of applying the performance criteria in § 421.120 and the performance standards in § 421.122 and any adverse action resulting from that application, the term “intermediary” also means a Blue Cross plan that has entered into a subcontract approved by CMS with the Blue Cross and Blue Shield Association to perform intermediary functions.

[71 FR 68228, Nov. 24, 2006]