Section 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.