Medicare excess charges explained

Some Medicare Supplement Plans (Medigap plans) say they cover excess charges. But what are excess charges?

If you have a Medicare supplement plan you might see that it covers “Part B excess charges” listed in your plan documents.

Here’s what it means: Excess charges refer to what a doctor bills over and above what original Medicare Part B will pay for a covered medical service. Medicare determines the amount they will pay for a procedure; which is called the assignment. Doctors who don’t agree with the assignment cost can charge up to 15% more than the Medicareapproved amount.

So it’s important to know if your Medicare Supplement plan covers excess charges. If it doesn’t cover them, then the best way to avoid having to pay any excessive charges is to ask if your health care provider accepts Medicare assignment.

If you have a Medicare Advantage Plan (Part C) you don’t have to worry about these excessive charges. Doctors who contract with Medicare Advantage Plans have already agreed to the Medicare “assignment”.

Sandra Teel, Medicare Insurance Broker (657) 204-4224