That guy is lying to you. There is NO doctor's service under Medicare for which the doctor would only be paid $7. There are bunches where your COPAY might only be $7 though. You can look your Medicare payments up on line for every visit if you create an account on their website. There are probably also some tests and things for which your COPAY might be $7 - but your copay is not all the doctor gets paid.
One thing a lot of places have been doing to get more money out of the pockets of Medicare patients - many of whom are getting less than $800 a month, and how they live on that I cannot begin to imagine - is to have their doctor's offices classified as "outpatient hospital facilities". Now they get to charge you hospital fees as part of your bill, and these hospital fees must come out of pocket until you hit your hospital out of pocket expenses, which is something in the neighborhood of $1200. So basically unless you are unfortunate enough to need surgery early in the year, you will never hit that out of pocket. For one 20 minute doctor visit, I was charged a co-pay of $28 - and then an additional copay for "hospital fees" of another $50. On top of this the doctor was paid in the neighborhood of $120 by Medicare. So they're not going to the poorhouse any time soon.
BTW, that wasn't even to see a real doctor - that was for me to see a resident, eg a medical student. (Residents are not allowed to practice without supervision and they are not fully licensed MDs - ergo, they are still medical students. ADVANCED medical students, but still students). When I asked why the fee was so high to see a medical student - this was actually more than I was charged to see my GP - I was told that I was being billed for the time his SUPERVISOR spent on the case. So basically I was being forced to pay the expense for HIS education. Go figure. They'll get you any way they can.
Needless to say, with copays of over $60 to $90 per visit, I just don't go to the doctor at all - so I'm pretty much in the same situation I was in before I was declared disabled and became eligible for Medicare. I can't really afford to go to the doctor. Except at least now if I need more surgery that will be paid for - well except the first $1200, but that beats nothing.
To bad surgery wasn't paid for back when I needed it, and if I'd had it when I first needed it, maybe I wouldn't have become disabled so soon. But that's a different can of worms. Anyway.
Go to the Medicare site to find a doctor in your area who takes Medicare. I would give you the link, but apparently I'm not allowed to "until you've posted a few times."
So you'll have to google "find a medicare doctor" and then select the link that says "Find doctors, hospitals, & facilities | Medicare dot gov". It was second in the list when I did the search just now.
Then call their office and make sure that information is up to date. Try to get out of them whether there are additional charges, eg those sneaky hospital fees. The clinic I was going to - associated with a local university-based hospital, and, incidentally, they do their level best to make new patients accept treatment from residents (eg medical students) - never told me about these additional charges despite my repeatedly asking about what fees I would be charged above and beyond what Medicare would pay them. You might need to specifically ask if the office is classified as a "hospital outpatient clinic". If it is then you may be subject to significant additional out of pocket expenses, which the local clinic here, at least, STILL wouldn't tell me how much they would be in advance even after I found out about them. How you're supposed to budget for a doctor's visit, I have no idea.
Unfortunately this is not illegal. It SHOULD be, but it is not.