South Carolina Insurance Practice Exam

A medical provider that accepts Medicare Assignment must do what regarding payment?

1. Charge additional fees for services

2. Offer discounts on services

3. Accept payment based on a defined Medicare schedule

4. Bill patients directly for the full amount

The correct answer is: Accept payment based on a defined Medicare schedule

When a medical provider accepts Medicare Assignment, they agree to accept the payment determined by Medicare for their services. This means they must adhere to the reimbursement rates set forth in the Medicare fee schedule, which outlines how much Medicare will pay for specific services. By accepting Medicare Assignment, the provider cannot charge the patient more than the Medicare-approved amount for those services, ensuring that patients do not face unexpected charges. This arrangement is designed to protect Medicare beneficiaries by limiting their out-of-pocket expenses and ensuring that they are only responsible for any applicable copayments or deductibles. It reflects the provider's commitment to working within the government's system, allowing for more straightforward billing and reducing confusion around payments for patients. In essence, accepting Medicare Assignment promotes fair pricing and accessibility for those reliant on Medicare.