Thus, the moving average cost of the green widgets was $5 per unit at the beginning of the month, and $5.88 at the end of the month. We will repeat the example, but now include several sales. Remember that we recalculate the moving average after every transaction.
Finally, pass-through billing is an arrangement in which a laboratory tests samples provided by a physician for a fee, and allows the physician to profit by billing payers directly for the laboratory services for more than the physician paid the laboratory. This approach is typically avoided for Medicare and Medicaid patients by most physicians.
As a reminder, pass through billing is not permitted by Blue Cross and Blue Shield of Oklahoma, and physicians should only bill for services that they performed themselves. By using our statewide preferred labs, providers can help reduce the overall cost of health care for our members and support our local Oklahoma economy.