42 C.F.R. § 424.126 – Payment to the hospital.

(a) Conditions for payment. Medicare pays the hospital if it—
1. (1) Has in effect an election that—
  1. (i) Meets the requirements set forth in § 424.104; and
  2. (ii) Reflects the hospital's intent to claim for all covered services furnished during a calendar year.
2. (2) Claims payment in accordance with §§ 424.32 and 413.74 of this chapter; and
3. (3) Submits evidence requested by CMS to establish that the services meet the requirements of this subpart.
(b) Amount of payment. Payment is made (in accordance with § 413.74 of this chapter) on the basis of 100 percent of the hospital's customary charges, subject to the applicable deductible and coinsurance provisions set forth elsewhere in this chapter.