Medicare Part B excess charges are covered by?

Medicare Part B excess charges refer to the difference between what a healthcare provider charges and what Medicare approves for a covered service. Not all health plans handle these excess charges the same way, which is why Medicare Supplemental insurance, also known as Medigap, plays a significant role in covering these costs.

Medicare Supplemental insurance policies are designed to help cover out-of-pocket costs that Medicare does not fully pay for, including copayments, coinsurance, and, importantly, excess charges. These policies can provide significant financial relief to policyholders, ensuring they do not have to bear the burden of those extra charges when they see certain healthcare providers that may charge above the Medicare-approved amount.

Other options such as Medicare Advantage plans, Medicaid, and private health insurance typically do not cover Medicare Part B excess charges. Medicare Advantage plans operate under a different structure and generally provide all Medicare services but may have different cost-sharing arrangements. Medicaid is a state and federally funded program aimed at providing coverage to low-income individuals and may not address Medicare Part B excess charges specifically. Private health insurance policies, while they can offer various types of coverage, do not usually align with Medicare's framework concerning excess charges, limiting their applicability when it comes to Medicare benefits.