Excess Charge refers to the additional amount that a healthcare provider may bill a patient for medical services in the context of Medicare. In some cases, healthcare providers may charge more than the Medicare-approved amount for a particular service. Understanding Excess Charges is crucial for Medicare beneficiaries to be aware of potential out-of-pocket costs and make informed decisions about their healthcare providers. In this article, we explore Excess Charges, how they are calculated, and the impact they can have on Medicare beneficiaries.
What are Excess Charges in Medicare?
In Medicare, Excess Charges arise when healthcare providers, who do not accept assignment for a particular service, charge more than the Medicare-approved amount for that service. Healthcare providers who accept assignment agree to the Medicare-approved amount as full payment for covered services. However, non-participating providers may charge up to 15% more than the Medicare-approved amount for the service they provide.
Calculating Excess Charges
Excess Charges are calculated based on the Medicare-approved amount for a specific service. For instance, if the Medicare-approved amount for a service is $100, a non-participating healthcare provider may charge up to $115 for the same service, resulting in a 15% Excess Charge.
Impact on Medicare Beneficiaries
Medicare beneficiaries who receive services from non-participating healthcare providers may be subject to paying Excess Charges out of their own pocket. These additional costs can add up and potentially create financial burdens for beneficiaries, especially for those with frequent or costly medical needs.
How to Avoid Excess Charges To avoid Excess Charges, Medicare beneficiaries have the following options:
- Choose Participating Providers: Beneficiaries can choose healthcare providers who accept Medicare assignment. Participating providers agree to the Medicare-approved amount, minimizing the potential for Excess Charges.
- Medigap Policies: Some Medicare beneficiaries purchase Medigap (Medicare Supplement) policies, which may cover all or part of Excess Charges, depending on the type of Medigap plan.
Excess Charge refers to the additional amount that non-participating healthcare providers may bill Medicare beneficiaries above the Medicare-approved amount for a specific service. Being aware of Excess Charges is crucial for Medicare beneficiaries to make informed decisions about their healthcare providers and potential out-of-pocket costs. Opting for participating providers or considering Medigap policies that cover Excess Charges can help beneficiaries avoid unexpected financial burdens and ensure comprehensive access to necessary medical services under Medicare.
