Allowed Amount
Medicare Glossary
The maximum amount your health insurance plan will pay for a covered service. Also called "eligible expense," "payment allowance," or "negotiated rate." You may owe the difference between the allowed amount and your provider's actual charge.
This content is for educational purposes only and does not constitute a recommendation of any specific Medicare plan. Benefits, costs, and availability vary by plan and location. For complete information about your Medicare options, visit Medicare.gov or call 1-800-MEDICARE (1-800-633-4227), TTY: 1-877-486-2048, available 24 hours a day, 7 days a week.