Question

A participating provider's usual and customary fee for a service is %120, the Medicare allowed amount is $78. What is the amount of write-down adjustment?

Answer 1

The write-down adjustment is $42, calculated by subtracting the Medicare allowed amount of $78 from the provider's usual fee of $120.

Step-by-step explanation:

The write-down adjustment refers to the amount by which a healthcare provider reduces their usual and customary fee to the allowed amount determined by Medicare. In this example, the provider's usual fee for a service is $120, but Medicare's allowed amount is only $78. Thus, the write-down adjustment would be the difference between these two amounts.

To calculate this, we subtract the Medicare allowed amount from the provider's usual fee: $120 - $78 = $42. Therefore, the write-down adjustment that the provider has to make is $42.