PAR (Participating Providers) is a simple agreement with medicare that the amount spent on medical charges can get reimbursement. This reimbursement is calculated on some rules, If the person is participating providers. Then the 80% from the allowable amount will be returned in that patient should pay 20% co-payment of the bill.
Calculate the total reimbursement for the participating provider when the allowed payment is Rs.5000.
|Total reimbursement||= (allowable amount x 80%) - patient 20% co-pay|
|= (5000 x 0.8) - (5000 x 0.2)|
|= 4000 - 1000|