Medicare Part B is the insurance that covers your outpatient expenses. Doctor visits, surgery, therapy, treatments, lab work, diabetic testing supplies, emergency room, and also hospital services done while you are not admitted to the hospital are all considered outpatient.
This insurance works similar to a major medical policy like you may have had before you went on Medicare. There is a calendar year deductible, $147 for 2013, and then Medicare Part B generally pays 80% of approved amounts.
Medicare Supplement Plan F or G will pay the 20% for you! Plan F will pay the deductible too!
Most doctors and hospitals will take an assignment of benefits. That means you just give them your insurance cards and Medicare along with your Medicare Supplement policy will pay your expenses straight to the provider for you.
A very few doctors do not accept assignment and may charge extra. This is called an excess charge. Excess charges are limited to 15% above the Medicare approved amount. Medicare will pay the 80% back to you. Medicare Supplement plans F or G will pay the 20% as well as the additional 15% back to you.