Yeah, it works out to around 9% of the total allowed amount, but it's 20% of one portion that makes up the fee schedule amount.
For anyone else still confused, it's like your grocery bill. Say there is a sales tax on food of 20%, but it only applies to food that is not ready to eat. So you spend about $50 on raw food and $50 on ready-to-eat food. A grocery total of $100 will have sales tax of $10, which is 10% and not the 20% you were expecting. If you regularly buy about half raw food and half ready-to-eat, then your net tax will be around 10% of the total.
In this instance for Medicare, part 1 + part 2 + part 3 = fee schedule, and the 20% (or 25%) reduction is only on part 2, which gives you a net reduction of around 9% of the total.
For anyone else still confused, it's like your grocery bill. Say there is a sales tax on food of 20%, but it only applies to food that is not ready to eat. So you spend about $50 on raw food and $50 on ready-to-eat food. A grocery total of $100 will have sales tax of $10, which is 10% and not the 20% you were expecting. If you regularly buy about half raw food and half ready-to-eat, then your net tax will be around 10% of the total.
In this instance for Medicare, part 1 + part 2 + part 3 = fee schedule, and the 20% (or 25%) reduction is only on part 2, which gives you a net reduction of around 9% of the total.
