When a physician 'takes assignment' for Medicare Part B services, the physician agrees to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A physician who takes assignment accepts the Medicare-approved amount for a covered service as payment in full. Medicare pays 80% of the approved amount and the beneficiary pays the 20% coinsurance (plus any unmet deductible). A participating physician who takes assignment cannot bill the beneficiary for the difference between the approved amount and the actual charge. A non-participating physician may accept assignment on a claim-by-claim basis and may balance bill within the limiting charge rules. Taking assignment protects beneficiaries from surprise charges because the approved amount is the ceiling for payment. This is why participating physicians are often preferred: assignment is automatic and the allowed charge is predictable.
Why the other options are wrong
- B) Assignment caps the charge at the approved amount; charging an arbitrary amount is balance billing beyond the limit.
- C) Taking assignment does not waive the deductible or coinsurance; the beneficiary still owes the cost-sharing.
- D) Accepting assignment means the physician participates in Medicare, not that they refuse Medicare patients.
Memory hook
Assignment = agreed amount. Doctor accepts Medicare's price as full pay; you owe only your 20%.