BC Advantage - 2019 Issue 9
You CAN Charge Medicare More Than You Charge Some Patients
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Article Overview
This article discusses healthcare pricing practices for clinics and suppliers, focusing on common misconceptions about whether charges must be uniform across payers and how Medicare pricing policy is framed. It reviews Medicare fee schedule concepts, customary charge terminology, and Office of Inspector General advisory opinions that are referenced in the context of charge comparisons and billing patterns. The piece is aimed at billing, compliance, and revenue cycle readers who want a higher-level understanding of Medicare pricing rules and related audit concerns without substituting for the full legal and policy analysis.
Why This Topic Matters
Pricing comparisons between Medicare and other payers can affect compliance review, audit risk, and how organizations understand their billing practices. This article helps readers identify the general policy framework and the types of Medicare guidance that may be relevant before consulting the full source.
Article Sections
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Pricing myths and payer charge differences
Introduces common misconceptions about healthcare pricing and whether different payers must be billed in the same way. Sets up the broader discussion of clinic and supplier charge practices.
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Medicare policy and customary charge concepts
Summarizes the Medicare framework for comparing actual charge, fee schedule amount, and customary charge. Discusses how customary charge is described in Medicare guidance.
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Questions about charge measurement
Raises interpretive issues about what counts as a charge in practice and how contractual payment arrangements may affect that analysis. Focuses on the uncertainty described in the article.
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OIG advisory opinions and pricing comparisons
Reviews the role of Office of Inspector General advisory opinions in addressing discount pricing arrangements and charge comparisons. Places these opinions in the context of Medicare-related compliance concerns.
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Profit margin and Medicare billing considerations
Discusses the article’s broader treatment of reasonableness, billing-related costs, and comparative margins when evaluating Medicare charges. Highlights the general compliance themes covered by the source.
What You Will Learn
- Common misconceptions about charging different payers different amounts
- How Medicare pricing is described at a high level in relation to customary charges
- Why the meaning of a billed charge may matter in pricing analysis
- How OIG advisory opinions are used in discussions of charge comparisons
- What general factors are discussed when evaluating Medicare-related pricing concerns
Who Should Read This
- Medical billing professionals
- Compliance staff
- Revenue cycle managers
- Clinic and supplier administrators
- Healthcare attorneys and consultants
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