What are the three components contained within each HCPCS/CPT code under RBRVS?

The correct answer identifies the three essential components of the Resource-Based Relative Value Scale (RBRVS) as physician work, practice expense, and malpractice insurance expense. Each of these components plays a crucial role in determining the overall value of services provided by physicians and healthcare professionals.

Physician work refers to the effort, skill, and time that a physician invests in providing a particular service. This takes into account the complexity of the service, the mental effort required, and the clinical judgment needed to deliver that service effectively.

Practice expense encompasses the costs related to operating a practice, including overhead costs such as rent, staff salaries, equipment, and supplies necessary to provide patient care.

Malpractice insurance expense reflects the costs associated with the malpractice insurance that physicians must maintain to protect themselves against liability claims while performing their duties.

Together, these components create a relative value unit (RVU) for each CPT/HCPCS code, which ultimately influences reimbursement rates. Understanding how these components interrelate helps in comprehending how Medicare and other payers set their reimbursement policies based on the value of the services rendered.