After a claim is filed with the appropriate contractor in the manner and form described in subpart C of part 424 of this chapter, the contractor must--
(a) Determine if the items and services furnished are covered or otherwise reimbursable under title XVIII of the Act;
(b) Determine any amounts payable and make payment accordingly; and
(c) Notify the parties to the initial determination of the determination in accordance with Sec. 405.921.