When a physician signs a participating agreement with Medicare, they agree to what kind of payment?

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When a physician signs a participating agreement with Medicare, they agree to accept Medicare's allowed charge as payment in full. This means that the physician commits to accepting the amount that Medicare decides is reasonable for the services provided, rather than charging additional fees or expecting the patient to pay anything beyond the Medicare copay or deductible.

Participating physicians typically agree to lower their fees than they might otherwise charge because they are guaranteed payment from Medicare for their services. This arrangement helps ensure that patients do not face unexpected charges, as the physician cannot balance bill them for the difference between their charge and the Medicare allowed amount. This structure promotes accessibility to care for beneficiaries and helps streamline billing operations for both physicians and patients, reinforcing the collaborative relationship between healthcare providers and Medicare.

The other answer choices do not accurately reflect the terms of a participating agreement with Medicare, as they imply alternative payment practices that are not permissible under this arrangement.

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