Question

In a relative value system of determining coverage for a given procedure what term describes the total amount payable per point?

A. Relative value
B. Translation factor
C. Practical value
D. Conversion factor

Answer 1

The term that describes the total amount payable per point in a relative value system of determining coverage for a given procedure is the Conversion factor.

Step-by-step explanation:

The term that describes the total amount payable per point in a relative value system of determining coverage for a given procedure is the Conversion factor.

The conversion factor is a fixed dollar amount that represents the value of one relative value unit (RVU). It is used to calculate the reimbursement or payment for a medical service based on the number of RVUs assigned to the procedure.

For example, if the conversion factor is $50 and a procedure is assigned 5 RVUs, the total amount payable for that procedure would be $250 ($50 × 5 RVUs).