Definitions for "Approved Amount"
The dollar amount Medicare finds reasonable for a covered medical service. Compare with Actual Charge.
The amount your health plan says is reasonable for a covered service. This amount may be less than the actual amount. For example, your health plan may cover $29.00 for a doctor's office visit, even though your doctor may charge you $32.00 for that visit. The $29.00 is the approved amount.
Entire payment Medicare will "approve" for collection. This includes the payment made by Medicare and the amount owed by the beneficiary, but does not necessarily reflect the balance of the bill (this is assuming the psychologist's actual charge is more than Medicare's approved amount).