What is an Exess Charge?

by Doug Benson on February 10, 2011. Updated December 8, 2012

in Glossary

The amount over what Medicare approves. Doctors and healthcare providers who do not accept assignment can charge up to 15% more than the Medicare approved amount for services. Some Medicare Supplement Plans cover these excess charges if they occur.

Some Medicare Supplements will pay any excess charge and some will not. Most healthcare providers accept Medicare On Assignment, which means they accept what Medicare approves and do not charge more.

Most Medicare Advantage plans include a provision whereby if a healthcare provider chooses to provide services to a client with their Advantage plan, the provider cannot charge any excess charges, even if they normally do.

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