Question

What is the Medicare fee schedule (MFS) based on?

A. HCPCS
B. Diagnosis-related groups
C. Medicare supplements
D. The patient's income
E. The Resource-Based Relative Value Scale

Answer 1

The Medicare fee schedule (MFS) is based on the Resource-Based Relative Value Scale (RBRVS), which assigns relative values to medical services based on the resources required to provide them.

Step-by-step explanation:

The Medicare fee schedule (MFS) is based on the Resource-Based Relative Value Scale (RBRVS). This scale assigns relative values to medical services based on the resources required to provide them, such as physician work, practice expense, and malpractice insurance. The MFS then assigns a monetary value to each service based on the relative value units (RVUs) assigned by the RBRVS.

For example, if a service has a higher RVU, it will have a higher monetary value in the fee schedule. This determines the payment rate that Medicare will reimburse for that service. The MFS is used to determine Medicare payments to healthcare providers and is updated annually.