Part A Surgery Example, Can You Explain 117k Approved, 24k Paid

[gordon]

Hi,
I had Part A surgery recently and I was surfing through medicare online.
I see the surgery was lumped in one big charge:
117K charged
117K approved
24K paid

I kinda understand Part B charges and paid amounts.
But this Part A seems really bizarre.
I always expect a large delta between charged and approved,
and a small delta between approved and paid.
This example is the opposite.
Can you explain how "paid" is calculated?
thx

 

[MBSC]

Most hospitals are reimbursed for Part A expenses based on the Diagnosis Related Group (DRG).

DRG explanation: https://www.ehealthmedicare.com/faq/what-are-diagnosis-related-groups/

More advanced description: https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/AcuteInpatientPPS/index.html

 

[gordon]

MBSC,
OK, thanks