Question

Accepting assignment on a Medicare claim means that the physician is compensated:

a.70% of the allowable charge.
b.100% of the limiting charge.
c.80% of approved amount.
d.100% of the usual and customary fee.

Answer 1

The physician is compensated 80% of the approved amount on a Medicare claim.

Step-by-step explanation:

The correct answer is c. 80% of approved amount.

Accepting assignment on a Medicare claim means that the physician agrees to accept the approved amount for the service as full payment. This means that the physician will be compensated 80% of the approved amount by Medicare, while the remaining 20% may be covered by the patient or a secondary insurance.

For example, if the approved amount for a service is $100, the physician would be compensated $80, and the patient or secondary insurance would be responsible for the remaining $20.