Section 489.1 - Statutory basis(a) This part implements section 1866 of the Social Security Act (the Act). Section 1866 of the Act specifies the terms of provider agreements, the grounds for terminating a provider agreement, the circumstances under which payment for new admissions may be denied, and the circumstances under which payment may be withheld for failure to make timely utilization review. The sections of the Act specified in paragraphs (a)(1) through (a)(4) of this section are also pertinent. (1) Section 1861 of the Act defines the services covered under Medicare and the providers that may be reimbursed for furnishing those services.(2) Section 1864 of the Act provides for the use of State survey agencies to ascertain whether certain entities meet the conditions of participation.(3) Section 1865(a)(1) of the Act provides that an entity accredited by a national accreditation body found by the Secretary to satisfy the Medicare conditions of participation, conditions for coverage, or conditions of certification or requirements for participation shall be treated as meeting those requirements. Section 1865(a)(2) of the Act requires the Secretary to consider when making such a finding, among other things, the national accreditation body's accreditation requirements and survey procedures.(4) Section 1871 of the Act authorizes the Secretary to prescribe regulations for the administration of the Medicare program.(b) Although section 1866 of the Act speaks only to providers and provider agreements, the following rules in this part also apply to the approval of supplier entities that, for participation in Medicare, are subject to a determination by CMS on the basis of a survey conducted by the SA or CMS surveyors; or, in lieu of an SA or CMS-conducted survey, accreditation by an accrediting organization whose program has CMS approval in accordance with the requirements of part 488 of this chapter at the time of the accreditation survey and accreditation decision, in accordance with the following: (1) The definition of immediate jeopardy at § 489.3 .(2) The effective date rules specified in § 489.13 .(3) The requirements specified in § 489.53(a)(2), (13), and (18) , related to termination by CMS of participation in Medicare.(c) Section 1861(o)(7) of the Act requires each HHA to provide CMS with a surety bond. 75 FR 50418 , Aug. 16, 2010, as amended at 80 FR 29839 , May 22, 2015