Latest Medicare Changes- Key Differences for PAR vs. Non-PAR Providers


Elizabethdusek1141

Uploaded on Mar 24, 2025

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If you're a healthcare provider or patient going through Medicare, knowing the difference between Participating (PAR) and Non-Participating (Non-PAR) providers is crucial. With recent changes to Medicare in 2025, choosing correctly will affect healthcare reimbursement rates, administrative burden, and patient satisfaction.

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Latest Medicare Changes- Key Differences for PAR vs. Non-PAR Providers

LATEST MEDICARE CHANGES: KEY DIFFERENCES FOR PAR VS. NON-PAR PROVIDERS HTTPS://WWW.247MEDICALBILLINGSERVICES.COM/ LATEST MEDICARE CHANGES: KEY DIFFERENCES FOR PAR VS. NON-PAR PROVIDERS Do you ever wonder why some medical providers accept Medicare assignments and others do not? Or why some physicians charge you more for the same services? If you're a healthcare provider or patient going through Medicare, knowing the difference between Participating (PAR) and Non-Participating (Non-PAR) providers is crucial. With recent changes to Medicare in 2025, choosing correctly will affect healthcare reimbursement rates, administrative burden, and patient satisfaction. Read Detailed Blog : https://www.247medicalbillingservices.com/blog/latest-medicare-chan ges-key-differences-for-par-vs-non-par-providers What is a PAR Provider in Medical Billing? A Participating (PAR) provider under Medicare will accept Medicare's approved rate as payment in full for all covered services. This indicates that the provider will accept assignment so that patients will only be asked to pay their required deductibles and coinsurance levels. PAR providers usually have smoother billing procedures and faster Medicare reimbursements. HTTPS://WWW.247MEDICALBILLINGSERVICES.COM/ LATEST MEDICARE CHANGES: KEY DIFFERENCES FOR PAR VS. NON-PAR PROVIDERS What is a Non-PAR Provider in Medical Billing? A Non-Participating (Non-PAR) provider can have the option to accept Medicare patients but does not always commit to accepting Medicare's approved amount in full payment. These providers may choose to accept assignments on a case-by-case basis or bill patients for an amount greater than the Medicare-approved amount, subject to limiting charges. But they will have slower reimbursement and higher administrative complexities. Which is the Right Choice? The decision to select PAR or non-PAR providers is based on the financial objectives of the practice and the demographics of patients. PAR providers enjoy predictable, stable payments and reduced claims processing, which suits them best to keep administrative loads at a minimum. Non-PAR providers might offer higher prices but their billing functions are quite complicated to handle with delayed reimbursement possibilities. Hospitals need to explore their Healthcare Practices Revenue Cycle Management solution requirements and administrative capabilities together with patient needs before selecting a provider. HTTPS://WWW.247MEDICALBILLINGSERVICES.COM/ LATEST MEDICARE CHANGES: KEY DIFFERENCES FOR PAR VS. NON-PAR PROVIDERS Conclusion The most recent adjustments to Medicare stand as evidence that professionals must master the difference between PAR and non-PAR provider regulations. Providers may want to seek professional advice to navigate such complexities and stay compliant. Outsourcing medical billing services to a trusted company like 24/7 Medical Billing Services can assist healthcare providers in achieving maximum reimbursements, minimizing administrative hassles, and maintaining streamlined revenue cycles. Professional help ensures providers can focus on providing quality patient care while maximizing their bottom line. HTTPS://WWW.247MEDICALBILLINGSERVICES.COM/ LATEST MEDICARE CHANGES: KEY DIFFERENCES FOR PAR VS. NON-PAR PROVIDERS Solution: Providers should adopt electronic health record (EHR) systems designed for behavioral health practices. Furthermore, automated templates and prompts can guide clinicians in meeting documentation standards while reducing errors and omissions. Staff training programs focused on documentation best practices are also critical for improving compliance. 3. Prior Authorization Hurdles Prior authorization remains a significant roadblock in behavioral health billing. Insurers frequently require approval for services such as therapy sessions, psychological testing, or inpatient care. The process often involves lengthy paperwork and follow-ups, delaying both care delivery and reimbursement. Solution: Designating a dedicated team to manage prior authorizations and using automated tools to track authorization statuses can help providers stay ahead of approvals. Also, there is a need to ensure timely renewals and address expirations proactively to reduce disruptions to patient care. HTTP://WWW.247MEDICALBILLINGSERVICES.COM LATEST MEDICARE CHANGES: KEY DIFFERENCES FOR PAR VS. NON-PAR PROVIDERS FAQs Q1. Can a provider modify their Medicare participation status? Ans: Providers can switch between PAR and Non-PAR status once a year during the Medicare open enrolment period. Q2. How can a PAR provider transition to non-PAR status? Ans: A PAR provider must send a signed letter on official letterhead to their Medicare contractor stating their intent to opt-out. Q3. Why do some providers prefer non-PAR status? Ans: Non-PAR providers can charge patients up to 15% above Medicare-approved rates, giving them more pricing flexibility. HTTP://WWW.247MEDICALBILLINGSERVICES.COM LATEST MEDICARE CHANGES: KEY DIFFERENCES FOR PAR VS. NON-PAR PROVIDERS Q4. How does a non-PAR provider impact patient expenses? Ans: Patients may have higher out-of-pocket costs since non-PAR providers can bill beyond the Medicare-approved amount. Q5. How do 2025 Medicare reimbursement changes affect providers? Ans: A reduction in the Physician Fee Schedule (PFS) conversion factor diminishes the payments received by PAR and Non-PAR medical providers. Q6. Can non-PAR providers offer telehealth services in 2025? Ans: Yes, but with restrictions—urban patients must visit clinical sites except for behavioral health services. Q7. How do Medicare Advantage changes impact providers? Ans: Medicare Advantage now covers mental health professionals, benefiting PAR providers while potentially reducing patients for non-PAR providers. HTTP://WWW.247MEDICALBILLINGSERVICES.COM LATEST MEDICARE CHANGES: KEY DIFFERENCES FOR PAR VS. NON-PAR PROVIDERS Q8. Can a provider change their Medicare status mid-year? Ans: No, the Medicare participation status of providers remains unchanged throughout the entire year without any possible modifications. Q9. What happens if a non-PAR provider overcharges beyond the limit? Ans: Exceeding the 115% limiting charge violates Medicare rules and may result in penalties or exclusion from the program. Q10. How can providers offset reduced Medicare reimbursements in 2025? Ans: PAR providers can use APCM codes for chronic care, while non-PAR providers may renegotiate contracts with Medicare Advantage plans. HTTP://WWW.247MEDICALBILLINGSERVICES.CO M LATEST MEDICARE CHANGES: KEY DIFFERENCES FOR PAR VS. NON-PAR PROVIDERS About 24/7 Medical Billing Services: 24/7 Medical Billing Services is the nation’s leading medical billing service provider catering services to more than 42 specialties across the entire 50 states. You can rely on us for end-to-end revenue cycle management. We guarantee up to 10-20% increase in the revenue with cost reduction of your practice for up to 50%. Call us today at 888-502-0537 to know more on how we can help boost profitability for your practice. Media Contact: 24/7 Medical Billing Services, Georgia: 3001 Greenfield Drive, Marietta GA, 30068 Texas: 2028 E Ben White Blvd, #240-1030 Austin TX, 78741 Tel: + 1 -888-502-0537 Email - [email protected] HTTPS://WWW.247MEDICALBILLINGSERVICES.COM/