customary and reasonable charge


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customary and reasonable charge

(in the United States) a fee usually established by health insurance or government agencies that is considered to be the "usual" cost of a specific medical service. The fee is commonly based on the amount the company or agency will pay for that service and may vary with geographic area.

customary and reasonable charge

The usual cost of a service to a patient. The term is used in the medical insurance industry to determine the amount the provider will be reimbursed for the service or procedure. Under Medicare, this is the lowest customary fee charged by a physician for a service or the prevailing fee of other area physicians for the same service.
See also: charge