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Services with a fixed copayment - On August 1, 2000, Medicare
initiated a new payment system called the Outpatient Prospective
Payment System (PPS) under which Medicare determines the fee
to be charged for most (but not all) covered services. The
patient is charged a fixed co-payment for the service received.
These amounts will vary. The Medicare payment rate will often
differ from the hospital charge amount. The approved Medicare
rate may be more or less than the hospital charge amount.
For more detailed information, contact Medicare (1-877-768-5471)
or consult the Medicare website at www.medicare.gov.

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Services with coinsurance - Services which do not fall
under the new PPS system continue to be covered under the
existing co-insurance system. Following is a partial list
of these services: ambulance services, physical therapy, occupational
therapy, speech-language therapy services, orthotics, non-implantable
prosthetics, durable medical equipment, or dialysis for permanent
kidney failure.
As before, the annual Medicare Part B deductible must be
satisfied before benefits under either method are paid. Diagnostic
Lab Services continue to be provided without patients having
to make co-payments.
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