How are services to physicians generally paid under Medicare Part B?

Medicare Part B primarily pays for services rendered by physicians based on a fee schedule that considers various factors, including geographical location. This fee schedule is called the Medicare Physician Fee Schedule (MPFS), which assigns a specific payment rate to each type of service based on its relative value and regional practice costs. Therefore, the payment is not a flat fee, nor is it contingent solely on whether a physician is a participant in Medicare.

This system is designed to ensure that reimbursement rates reflect the costs associated with providing medical care in different areas, taking into account variations such as local wage rates and the cost of living. Thus, the approach helps maintain fairness and viability for physicians serving diverse populations across the country while ensuring that Medicare funds are utilized effectively.