Medicare Part B Excess Charges, most simply stated, are charges that physicians charge above the Medicare-approved amount. These charges are typically the responsibility to of the individual, unless the person has a Medigap plan that pays those excess costs. This doesn't always occur; however, it can occur at some physicians who do not participate in the Medicare program or accept "assignment" (the Medicare-specified amount that they pay for a service or procedure).
Typically, Part B Excess Charges are limited to a certain percentage (this can vary in different states). However, some doctors do apply this charge. In most cases, it is specialists or doctors in larger, urban areas that are non-participating providers and refuse Medicare "assignment".
Here is an example of how Medicare Part B Excess charges would work in a real-world setting:
Fred goes to the doctor, and his visit has a Medicare-approved charge of $100.
The doctor doesn't participate in Medicare, which means he or she doesn't take Medicare "assignment". They charge the extra charges up to the full allowable amount, which for example, could be 15%. So the total charge would be $115.
Medicare will pay their 80% (assuming the Medicare Part B Deductible has already been met) of their approved amount. So, Medicare will pay $80.
Fred would owe the Obamacare
$20 of the Medicare-approved amount, plus the $15 of the Part B additional charges UNLESS he has a Medicare Supplement to pick up this amount.
Obviously, this is a low-cost example, but on a larger Part B charge (i.e. larger than a regular doctor visit), the excess charges could be a relatively large responsibility for a Medicare recipient. The most effective way to avoid the possibility of these excess charges is with a Medicare Supplement Plan F or Medicare Supplement Plan G. These two plans cover the Part B excess charges in full and prevent you from having to pay out of pocket for these costs.
Medicare-Supplement-Comparison.com is a leading, independent resource for Medicare and Medicare Supplement insurance information. On the site, you can obtain information about Medicare Supplement plans, acquire Medigap quotes or get your questions answered. One of the commonly asked questions, What Are Medicare Part B Excess Charges, is answered on the site. Also, you can get information about popular companies that do Medicare Supplement insurance, such as Mutual of Omaha quotes, Forethought Medigap quotes and Gerber Medicare Supplement information. If you have specific questions about Part B excess charges or Medigap, you can contact the author at 877.506.3378.