In a scenario with two payers where Medicare is the secondary payer, how is payment determined?

• A. Medicare pays first in all cases.
• B. The other payer pays first as primary, and Medicare coordinates payment of the remaining allowed amount.
• C. Medicare and the other payer split the payment equally.
• D. Medicare denies the claim if another payer exists.

Answer: (B)

When two payers are involved and Medicare is the secondary payer, the other payer takes the primary role and pays first for covered services. After the primary payer has paid, Medicare coordinates the remaining eligible charges, paying what it can toward the remaining allowed amount according to its rules. This means Medicare doesn’t pay first, and it doesn’t simply split the bill evenly or deny the claim just because another payer exists. If the primary payer covers the full allowed amount, Medicare may not pay anything further, and the patient may still owe any remaining deductible or coinsurance. This coordination of benefits ensures charges aren’t overpaid and the patient’s responsibility is appropriately shared between the payers.