42 CFR § 447.362 - Upper limits of payment: Nonrisk contract.

---
identifier: "/us/cfr/t42/s447.362"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 447.362 - Upper limits of payment: Nonrisk contract."
title_number: 42
title_name: "Public Health"
section_number: "447.362"
section_name: "Upper limits of payment: Nonrisk contract."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "C"
subchapter_name: "MEDICAL ASSISTANCE PROGRAMS"
part_number: "447"
part_name: "PAYMENTS FOR SERVICES"
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 1396r-8, and Pub. L. 111-148."
regulatory_source: "43 FR 45253, Sept. 29, 1978, unless otherwise noted."
cfr_part: "447"
---


# 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 beneficiaries: 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]