Section 424.126 - Payment to the hospital(a)Conditions for payment. Medicare pays the hospital if it- (1) Has in effect an election that- (i) Meets the requirements set forth in § 424.104 ; and(ii) Reflects the hospital's intent to claim for all covered services furnished during a calendar year.(2) Claims payment in accordance with §§ 424.32 and 413.74 of this chapter; and(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.