ASP in Medical Billing
ASP in medical billing refers to Average Sales Price, which is used to determine the reimbursement rate for drugs covered under Medicare Part B.
ASP in Medical Billing Explained
The Average Sales Price (ASP) is calculated based on the selling price of drugs from manufacturers, including any rebates or discounts. Medicare uses the ASP to set payment rates for outpatient drugs administered in medical offices or clinics. This ensures consistent pricing for drugs covered by Medicare.
For example, Medicare reimburses a provider for administering a drug based on its ASP, ensuring that the provider is paid fairly for the cost of the drug.
Explore acronyms and abbreviations in Medical billing glossary.
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