Excess charges may be incurred if you choose a medical practitioner or provider that won’t take assignment. This means the service provider doesn’t accept the Medicare-approved sum as full payment. Legally, providers who do not accept assignment can only impose up to 15% in excess charges over the Medicare-approved total (state legislation may vary/increase limitations).
For instance, if Medicare’s Fee Schedule amount for a health appointment is $200, a non-participating physician may bill you an additional 15%, effectively refusing the ap-proved Medicare Fee Schedule as full payment. In this case, Medicare pays $160, cov-ering 80% of the practitioners’ fees. The beneficiary would then pay $40 (20%) plus the additional 15% percent charge, or $30, making the total out-of-pocket price $70. Since Plan G includes 100% of Medicare Part B excess charges, all out-of-pocket expenses in this scenario would be covered by that policy.