
Is it illegal for doctors to charge patients less than the insurance company for the same service?
I’m in California and I occasionally go to a Massage therapist for an hour sports massage when my neck and shoulders are acting up. The massage business is owned by a Chiropractor, but from what I can tell, it is NOT a doctors office. Massages are $60 cash, but they do accept my health insurance. My insurance statement indicates that the services I received were from the Chiropractor, though I never am seen by her. The Chiropractor charged the insurance company $140 (though the insurance company only paid about $96 of it) for the massage. This smells like fraud to me. Is it?
No, it’s not illegal.
There is absolutely no regulation of what a medical provider can charge. Typically, they’ll charge 5 different people 5 different rates.
In my opinion, this is one of the major items that REALLY needs reform – to allow uniform pricing, which lets a patient shop around. Wish the politicians would make it happen.
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