What is the amount of eligible expense if Joe's anesthesiologist charged $1500 and the Medicare fee schedule shows $1200 as the maximum allowable amount?

The eligible expense in the context of Medicare is determined by the maximum allowable amount set by the Medicare fee schedule. In this scenario, Joe's anesthesiologist charged $1500 for the procedure, but the Medicare fee schedule specifies that only $1200 can be considered for reimbursement.

This means that even though the actual charge is higher, Medicare will only recognize $1200 as the eligible expense for coverage purposes. Therefore, for any reimbursements or cost-sharing calculations, the expense amount used would be $1200, which is the maximum allowable amount according to Medicare standards.