Section 411.206 - Basis for Medicare primary payments and limits on secondary payments(a)General rule. CMS makes Medicare primary payments for services furnished to disabled beneficiaries covered under the LGHP by virtue of their own or a family member's current employment status if the services are-(1) Furnished to Medicare beneficiaries who have declined to enroll in the GHP;(2) Not covered under the plan for the disabled individual or similarly situated individuals;(3) Covered under the plan but not available to particular disabled individuals because they have exhausted their benefits under the plan;(4) Furnished to individuals whose COBRA continuation coverage has been terminated because of the individual's Medicare entitlement; or(5) Covered under COBRA continuation coverage notwithstanding the individual's Medicare entitlement.(b)Conditional primary payments: Basic rule. Except as provided in paragraph (c) of this section, CMS may make a conditional Medicare primary payment for any of the following reasons:(1) The beneficiary, the provider, or the supplier that has accepted assignment has filed a proper claim with the LGHP and the LGHP has denied the claim in whole or in part.(2) The beneficiary, because of physical or mental incapacity, failed to file a proper claim.(c)Conditional primary payments: Exceptions. CMS does not make conditional Medicare primary payments if-(1) The LGHP denies the claim in whole or in part for one of the following reasons:(i) It is alleged that the LGHP is secondary to Medicare.(ii) The LGHP limits its payments when the individual is entitled to Medicare.(iii) The LGHP does not provide the benefits to individuals who are entitled to Medicare on the basis of disability and covered under the plan by virtue of current employment status but does provide the benefits to other similarly situated individuals enrolled in the plan.(iv) The LGHP takes into account entitlement to Medicare in any other way.(v) There was failure to file a proper claim for any reason other than physical or mental incapacity of the beneficiary.(2) The LGHP, an employer or employee organization, or the beneficiary fails to furnish information that is requested by CMS and that is necessary to determine whether the LGHP is primary to Medicare.(d)Limit on secondary payments. The provisions of § 411.172(e) also apply to services furnished to the disabled under this subpart.