1.0Glossaryhttps://www.healthbenefitstimes.com/glossaryGlossaryhttps://www.healthbenefitstimes.com/glossary/author/adminglossary/Prudent buyer principle - Definition of Prudent buyer principlerich600338<blockquote class="wp-embedded-content" data-secret="QbkaP5Ikqw"><a href="https://www.healthbenefitstimes.com/glossary/prudent-buyer-principle/">Prudent buyer principle</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.healthbenefitstimes.com/glossary/prudent-buyer-principle/embed/#?secret=QbkaP5Ikqw" width="600" height="338" title="“Prudent buyer principle” — Glossary" data-secret="QbkaP5Ikqw" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script>
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The principle that Medicare should not reimburse a provider for a cost that is not a reasonable cost because it is in excess of the amount that a prudent and cost-conscious buyer would be expected to pay. For example, an organization that does not seek the customary discount on bulk purchases could, through the operation of this principle, be reimbursed for less than the full purchase price.