For Medicare purposes, the terms “interns” and “residents” include physicians participating in approved postgraduate training programs and physicians
who are not in approved programs but who are authorized to practice only in a hospital
setting (e.g., unlicensed graduates of foreign medical schools). As a general rule,
services of interns and residents are reimbursed on a reasonable cost basis by the
Part A intermediary. However, the services of an intern or resident are reimbursable
by the carrier on a reasonable charge basis as physicians' services when the individual:
(1) renders the services off provider premises (however, see also B. below, regarding
certain “moonlighting” interns and residents); (2) is not compensated by a provider; and (3) is fully licensed
to practice medicine by the State in which the services are performed.