What is a resource-based relative value system?

• A. A method for hospital accreditation
• B. A framework for health savings accounts
• C. A method for determining health insurance premiums
• D. A managed care tool associated with Medicare Part B

Answer: (D)

The resource-based relative value system is a Medicare Part B framework for paying physicians. It assigns a relative value to each medical service based on the resources required to deliver it, breaking that value into three parts: physician work, practice expense (overhead), and malpractice costs. These values are adjusted for geography and then converted into a dollar payment using a conversion factor. This system standardizes how physician services are reimbursed under Part B and is used within managed care contexts tied to Medicare. It isn’t about hospital accreditation, health savings accounts, or general premium setting, which is why the description tied to Medicare Part B physician payments is the best fit.