Which of the following statements about diagnosis-related groups (DRGs) is correct? A. Doctors prescribe DRGs to patients. B. DRGs are a method to "group" Medicare payment based on certain classifications. C. A medical coder doesn't need to consider DRGs when filing insurance claims. D. DRGs are a device used by medical transcriptionists.
A DRG, or diagnostic related grouping, is how Medicare and some health insurance companies categorize hospitalization costs and determine how much to pay for a patient's hospital stay.