The resource-based relative value system is used to determine payments in which Medicare part?

The resource-based relative value system is used to determine payments in which Medicare part?

• A. Part A
• B. Part C
• C. Part B
• D. Part D

Answer: (C)

The resource-based relative value system is used to determine payments for physician services under Part B. It assigns each service three components—physician work, practice expenses, and professional liability insurance—each with a relative value (RVU). The total RVU for a service is then multiplied by a conversion factor to yield the payment. This framework specifically applies to Part B, which covers outpatient physician services, not to Part A (inpatient hospital payments), Part C (Medicare Advantage plans), or Part D (prescription drugs).

The resource-based relative value system is used to determine payments for physician services under Part B. It assigns each service three components—physician work, practice expenses, and professional liability insurance—each with a relative value (RVU). The total RVU for a service is then multiplied by a conversion factor to yield the payment. This framework specifically applies to Part B, which covers outpatient physician services, not to Part A (inpatient hospital payments), Part C (Medicare Advantage plans), or Part D (prescription drugs).