When a Medicare beneficiary visits a healthcare provider, such as an Adult Clinical Nurse Specialist (CNS) in a small privately owned physician's office, Medicare usually covers a part of the total service cost, typically 80%. This payment model leaves a balance, often referred to as the 20% co-insurance, which is the patient's responsibility to pay. In this specific scenario, the CNS has agreed to participate in the Medicare program by accepting assignment.
Accepting assignment means that the provider agrees to accept the Medicare Approved Amount (MAA) as the total payment for their services. The MAA is a pre-determined rate that Medicare considers reasonable for a specific medical service within a specific geographical area. For participating providers, this agreement also stipulates that they cannot charge the patient more than the Medicare deductible and the 20% co-insurance. Therefore, the CNS, by agreeing to accept assignment, is bound to this pricing structure.
Since the CNS has accepted Medicare's terms, after Medicare pays its share of 80%, the facility where the CNS practices has the right and the ability to bill the patient for the remaining 20%. This is a standard practice in the healthcare industry where the patient pays a portion of the cost, ensuring that Medicare's payments and the patient's contributions together cover the total approved charge for the service.
It's important to note that if the CNS had not accepted assignment, the billing dynamics would be different. A non-participating provider can choose to accept assignment on a case-by-case basis. If they do not accept assignment, they can charge the patient more than the Medicare approved amount, up to the limiting charge, which is typically 15% over the Medicare approved amount in most states. However, in this scenario, because the CNS is a participating provider, they must adhere to the terms of assignment, thus limiting the charge to the patient to no more than the deductible and 20% co-insurance.
In summary, the facility where the Adult Clinical Nurse Specialist works, under the obligations of Medicare assignment, can and should bill the patient for the remaining 20% of the Medicare approved charge after Medicare has paid its 80% share. This process ensures that the provider is compensated for the total approved amount for their services, while also adhering to the legal and ethical standards set forth by Medicare.