Relative Value Schedule
What Does Relative Value Schedule Mean?
A relative value schedule (RVS) is a list that assigns a specific amount to various surgical procedures. Insurance companies either reimburse or directly pay these amounts, depending on the specifics of the health policy. The cost for each procedure is predetermined by Medicare and other insurers that use Medicare’s pricing model, which considers factors such as the complexity of the procedure and the cost of living in the region.
Insuranceopedia Explains Relative Value Schedule
Relative value is assigned to each procedure, as established by Medicare, to ensure fair pricing for surgical procedures across the United States. Since the cost of living varies by location, the same procedure may have different costs depending on the region.
Other local factors can also influence procedure costs but may not be reflected in the relative value schedule. For example, an area’s abundance of cardiologists might lower the price of heart surgery in that region, even though the scheduled amounts remain unchanged.
