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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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The incentive payment is equal to 75 percent of Medicare allowable charges for covered services furnished by the physician in a year subject to maximum payments each year as follows: First year - $15,000 Second year - $12,000 Third year - $8,000 Fourth year - $4,000 Fifth year - $2,000 ?
Under the Medicare incentive, physicians who are using an EHR in 2011 or 2012 can receive an incentive equal to as much as 75% of their Medicare allowable charges per year for the cost of their hardware and software, up to a maximum of $44,000 over a 5-year period.
There is a $135 annual deductible for physician charges and other outpatient services, after which the beneficiary pays 20 percent of the allowable charges.
 
 
 
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