Question

Mr Doolittle has Medicare Parts A and B coverage . He was well during the entire past year. On January 1 , Mr. Doolittle is rushed to the hospital , where Dr. Input performs an emergency gastric resection. The hospital bills Medicare under Part A coverage , and under the Part B coverage, the physician bills $450 for surgical services. The doctor agrees to accept assignment. The patient has not met any of his deductible for 2017 which is $183. Complete the following statements by putting in the correct amounts.

Answer 1

The completion of the following Medicare mathematical calculations by putting in the correct amounts is as follows:

a. Medicare payment:  $173.60

b. Patient owes Dr. Input: $226.40

c. Dr. Input’s courtesy adjustment: $50

What is the courtesy adjustment?

Courtesy adjustment is the write-off of a part of the medical bills to reduce the payment burden on the patients not fully covered by Medicare.

Data and Calculations:

Original bill = $450

Unmet deductible = $183

a. Medicare payment:  $173.60 ($400 x 43.4%)

b. Patient owes Dr. Input: $226.40 ($400 x 56.6%)

c. Dr. Input’s courtesy adjustment: $50 ($450 - $400)

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Question Completion:

a. Medicare payment:

b. Patient owes Dr. Input:

c. Dr. Input’s courtesy adjustment: