If a participating provider's usual fee is $700.00 and the Medicare allowed amount is $450.00, how much is written off?

If a participating provider's usual fee is $700.00 and the Medicare allowed amount is $450.00, how much is written off?

• A. $350.00
• B. $250.00
• C. $300.00
• D. $390.00

Answer: (B)

To determine how much is written off, you subtract the Medicare allowed amount from the participating provider's usual fee. In this case, the participating provider's usual fee is $700.00, and the Medicare allowed amount is $450.00. Performing the calculation: $700.00 (usual fee) - $450.00 (Medicare allowed amount) = $250.00 written off. This means the provider receives the allowed amount of $450.00 from Medicare and must write off the remaining difference of $250.00, which is the amount above what Medicare allows. This is typical in scenarios where providers have agreed to accept Medicare's payment rates, leading to a reduction in their revenue when billing Medicare patients. The written-off amount represents the difference between what the provider charges and what Medicare is willing to pay.

To determine how much is written off, you subtract the Medicare allowed amount from the participating provider's usual fee. In this case, the participating provider's usual fee is $700.00, and the Medicare allowed amount is $450.00.

Performing the calculation:

$700.00 (usual fee) - $450.00 (Medicare allowed amount) = $250.00 written off.

This means the provider receives the allowed amount of $450.00 from Medicare and must write off the remaining difference of $250.00, which is the amount above what Medicare allows. This is typical in scenarios where providers have agreed to accept Medicare's payment rates, leading to a reduction in their revenue when billing Medicare patients. The written-off amount represents the difference between what the provider charges and what Medicare is willing to pay.