Discounts

Discounts for Medical Services have always raised questions and fears among many in the Medical Profession. As physicians, we have our hands tied when we accept and sign contracts with 3rd party payors and especially with Medicare. Medicare and all government programs are stringent on giving discounts and hefty fines can be placed on the violators.

Here is the official position statement from the Office of Inspector General (OIG).
http://oig.hhs.gov/fraud/docs/alertsandbulletins/2004/fa021904hospitaldiscounts.pdf

This position statement was directed at hospitals in particular, but the Indiana State Medical Association (ISMA) states it equally applies to all providers. Based on the reading of this statement, it is acceptable to give discounts when there is a documented need for Medicare patients.

In addition, there should be no problem giving discounts to patients who is on an insurance plan that the physicians have no contract with or in patients who actually have no insurance.

Documentation of why the discount is given would always be helpful if for some reason you were challenged later.