Under Part a of Medicare,how Is Reimbursement for Inpatient Hospital

question 2

Multiple Choice

Under Part A of Medicare,how is reimbursement for inpatient hospital care determined?

• A)The amount billed to Medicare by the hospital is the amount Medicare pays.
• B)Eighty percent of the hospital's regular charge for care is paid.
• C)The hospital's usual,reasonable,and customary charge is paid.
• D)Hospital care is classified into diagnosis-related groups (DRGs)and the amount reimbursed depends on the DRG classification of the care delivered.

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Definitions:

Plant Capacity

The maximum output that a manufacturing facility can produce under normal working conditions.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, which allocates an equal amount of depreciation each year over the asset's useful life.

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Salvage Value

Projected value of an asset for resale once it has concluded its period of effective use.