What is assignment?

 
What is Assignment?
 
There are two different ways your supplier may provide equipment through Medicare, and you and the supplier must agree on the approach. One is if your provider chooses to accept the assignment of the equipment. When a supplier accepts assignment, it means he agrees that he will accept the Medicare allowable charge as full reimbursement.
 
Payments will be made directly to the supplier and the supplier will bill you for the 20% portion and deductible not paid by Medicare.
 
The other approach is when a supplier does not accept assignment. That means that you agree to pay the supplier in full for the item, even the costs that exceed those normally allowed by Medicare. The supplier will file a claim on your behalf and then payment from Medicare will be made directly to you at 80% of the Medicare allowable charge if the supplier chooses non-assignment and the patient will then be responsible for full payment to the supplier.
 
The supplier is not required to file a claim for services or items that are not, in any circumstance, covered by Medicare. Examples: bath benches, diapers and support hose. However, if you request the claim to be filed, the supplier must do so.