## Health Insurance Calculations – Medicare Non-Participating Provider This scenario is for a non-participating provider who contracts with Medicare. Prior to determining the limiting charge you must fi

Health Insurance Calculations – Medicare Non-Participating Provider

This scenario is for a non-participating provider who contracts with Medicare.  Prior to determining the limiting charge you must first decrease the PFS amount by 5%.  More information is available to you in Chapter 9 of your text pages 322-330.  Specific tips are:

·         Non Participating Medicare physician receives a 5% reduction of the MPFS

·         Limiting charge = the highest amount provider can collect from patient and insurance

·         Limiting charge = [MPFS – (5% x MPFS)] x 115%

Analyze a scenario to determine monetary responsibility for a visit.

Scenario

Calculate the following amounts for a non-participating provider who bills Medicare.

Submitted charge (based on provider’s regular fee)                         \$650

Medicare participating physician fee schedule allowed amount        \$450

Medicare Non-participating physician allowed amount                     \$

(MPFS allowed amount, less 5 percent)

Medicare payment (80% of MPFS allowed, less 5 percent)              \$

Limiting charge to patient                                                                   \$

[MPFS – (MPFS x 5 percent)] x 115 percent

Patient payment                                                                                 \$

(balance of the limiting charge minus Medicare payment)

Provider write-off                                                                                \$