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allowable charge

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allowable charge
[əlou′əbəl]
the maximum dollar amount that a third party, usually an insurance company, will reimburse a provider for a specific service.

allowable charge,
n the maximum dollar amount on which benefit payment is based for each dental procedure.

allowable charge
Managed care The lesser of the actual charge, the customary charge and the prevailing charge, which is the amount on which Medicare bases Part B payments


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In most cases, the charge was far less than the maximum allowable charge, she said.
If an automatic annual step-up increases the applicable charge, the maximum allowable charge is 0.
They would also have to wait many months for Medicare to reimburse them the 80-percent of the allowable charge.
 
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