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Medical ExpenseSeen in 4 questions

Medicare Assignment

A provider's agreement to accept Medicare's approved amount as full payment; participating providers take assignment on all claims, and balance billing is prohibited for assigned claims.

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Practice This Concept

A Medicare beneficiary receives covered services from a nonparticipating physician who chooses not to accept assignment for the claim. Which statement describes the financial consequence?

The physician may bill the beneficiary up to a statutory limiting charge above the Medicare-approved amount — A nonparticipating physician has not signed the agreement to accept assignment on all Medicare claims. When such a physician does not take assignment, the physician may balance-bill the beneficiary for the difference between the actual charge and the Medicare-approved amount, but only up to a statutory limiting charge set above the approved amount. This contrasts with a participating provider, who accepts the approved amount as payment in full on every claim, and it means the beneficiary's out-of-pocket cost is higher but still capped by law.

National insurance concept

A physician who does not accept Medicare assignment for a covered Part B service may charge the beneficiary:

More than the Medicare-approved amount, with the beneficiary responsible for the difference, subject to the limiting charge — Nonparticipating (non-assigning) physicians may bill more than the Medicare-approved amount for Part B services. Medicare pays its usual 80% share based on the approved amount, and the beneficiary is responsible for the balance — the 20% coinsurance plus the amount over the approved amount — up to the limiting charge ceiling that caps how much more the physician may charge. Participating (assigning) providers, by contrast, accept the approved amount as payment in full, leaving the beneficiary only the 20% coinsurance.

National insurance concept

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