People who have Original Medicare, and the amount a health care provider or physician is legally permitted to charge is more than the Medicare-approved amount, the difference is called an excess charge.
Part B Excess charges happen when a doctor overcharges Medicare more than the Medicare-approved amount.
- Physicians who accept “assignment” have agreed to accept the Medicare-approved amount as full payment.
- Physicians who don’t accept “assignment” can overcharge the Medicare rate by a maximum of 15%. This is an “excess charge.”