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yellowdogintexas

(23,247 posts)
5. not exactly how payment is determined
Fri Nov 29, 2019, 06:36 PM
Nov 2019

I used to process claims for Medicare Part B and after that for other types of medical insurance.Providers who accept Medicare's allowable charge as full payment know that was what they will receive. If you see a physician who does not participate in Medicare you can be billed the full amount, and any coverage by insurance will be sent directly to the patient.)

Medicare or any other insurance does not bill anything back to the patient, but the provider does. Even if the doctor's office bills you, if the insurance person knows it's wrong they are contesting it and if htey get an adjustment you will get a refund from the doctor. You get an explanation of benefits from Medicare which shows how the claim is broken down but that is not a bill in fact it clearly states that.

For a contracted provider, if bill is $300 with an allowable charge of $200, the provider receives 80% of $200. The provider may then bill the patient 20% of $200 and that other $100 is written off. The providers know their allowable charges they are part of their contract. This is how labs generally work with insurances in general. If the particular service is not in the provider's contracted services then it would be denied and the provider can bill for the whole amount. If the provider is not a participating provider then they can bill you for more than 20% of the adjusted amount. But you won't get a bill from the insurance company for the amount they didn't cover.

The physician ordering the labs should know which of the big labs are participating providers and that is where one should go. First rule of medical insurance: never go to a non participating provider.
The error could have been made by the doctor in the written order, the lab in submitting the claim or the claims processing at the Medicare office. Somewhere along the way it can be corrected. If a lab charge is denied, go to the doctor who ordered it to start the review. You have to let them know because they are not going to see the payment info from the lab

I suspect that doctor's office called to double check the code and ask for the claim to be refiled with a correction if it was coded in error. If the doctor's office put an incorrect diagnosis or code on the lab order that is sent over, then the doctor's office will make the correction, resend the order and the lab will refile. The lab wants to be paid too. Normally when a claim is rejected by insurance, the provider gets right on it .

Recommendations

0 members have recommended this reply (displayed in chronological order):

That unquestionably sucks, but you are stuck with a Hobson's choice... TreasonousBastard Nov 2019 #1
I just went through the same thing BittyJenkins Nov 2019 #2
sounds like the doctor's office may have used an incorrect diagnosis or code on the written order yellowdogintexas Nov 2019 #6
Pretty sure it comes down to the code in my case. Susan Calvin Nov 2019 #11
Did you get the test???? dixiegrrrrl Dec 2019 #22
Thank you for asking. Susan Calvin Dec 2019 #23
Medicare pays for 80% of what is deemed "reasonable" CharleyDog Nov 2019 #3
Except Medicare providers are required to accept the amount Medicare says is reasonable - pnwmom Nov 2019 #4
not exactly how payment is determined yellowdogintexas Nov 2019 #5
The lab I went to did not even contact the doctor's office. Susan Calvin Nov 2019 #12
Susan it may have been some or all of the charges. yellowdogintexas Nov 2019 #7
I'm on traditional Medicare and TRICARE. Susan Calvin Nov 2019 #13
Medicare isn't shy about stating that if a provider won't cover the cost of a procedure then the abqtommy Nov 2019 #8
Wow, it sounds like you talked to some people at Medicare who are actually competent. Susan Calvin Nov 2019 #16
From my experience that is standard, if Medicare or any insurance for that matter doesn't cover still_one Nov 2019 #9
I'm not sure now, since they wouldn't give me a copy of the ABN, Susan Calvin Nov 2019 #14
I think your assessment is probably right. Regardless, if you need the results in orders to know still_one Nov 2019 #15
Thank you so much for the responses. Susan Calvin Nov 2019 #10
That is absolutely standard. PoindexterOglethorpe Nov 2019 #17
Actually, they had the cost right on the form they wanted me to sign. Susan Calvin Nov 2019 #18
Oh, good, I'm glad they had the cost. PoindexterOglethorpe Nov 2019 #19
You're probably right about the Medicare website, but I have had no luck so far . Susan Calvin Nov 2019 #20
Trust me, there is zero transparency about the cost of anything PoindexterOglethorpe Dec 2019 #21
That's for sure El Mimbreno Dec 2019 #24
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