Medicare Part A and Part B Essay Example | Topics and Well Written Essays - 500 words

Medicare Part A and Part B - Essay Example To reflect this fact, all the calculations found below will have to incorporate a value (the national large urban standardized amount and the labor related large urban standardized amount, for example) to correctly calculate the claims. There is also a geographic cost adjustment factor, which in this case needs to be relevant to San Francisco, which needs to be incorporated into calculations to ensure that the costs incurred by Medicare are relevant to the treatment area in which the patient lives. Of course, the wages received in this area will be different to in other areas of the US and these are also incorporated into the federal operating payment incurred. The skilled nursing facility is also in this area and thus will be subject to the same kind of geographic adjustment as the General Hospital claim. In this case, San Francisco is one of the more expensive areas of the US in which to be treated (Medicare, 2010) and as such the costs will reflect this fact and may seem excessive to someone receiving the same treatment in a rural area in a smaller hospital. Firstly, the federal operating payment with IME and DSH needed to be calculated.