Medical Billing Forum
General Category => General Questions => : Christy May 06, 2013, 03:38:10 PM
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Hi,
Does anyone know the legality of a dr attaching an "administrative" fee to a bill?
For example- the copay is not paid at the time of service, so an additonal fee is added to the bill that needs to be mailed out...
thanks! ;D
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I don't believe that's legal. State Farm and Blue Cross of California have both been in class action suits recently for charging for paper billing.
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no, I mean charging the patient an additional fee when the copay is not paid at the time of service
thanks!
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What is the fee called on the statement to the patient?
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"administrative fee"
or "billing fee"
it is not in place yet, but a doc I work for wants to initiate this...
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If your doctor is a participating provider, his contract with the insurance carrier will spell out what he can charge for. If he values being a participating provider for a given carrier, he should make certain whether they allow this type of charge. If he levys the charge, and it is not allowed, and a patient complains, he may be removed as a participating provider.
I know at least some insurance carriers allow providers to levy a reasonable interest charge on unpaid balances that are owed.
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Richard is right, but in addition I would add you can't add interest, penalties, etc outside the state laws. What does your administrative fee cover out of curiosity?
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Hey Linda,
It's not in place yet, but the provider I bill for is frustrated that so many patients don't pay their copay at the time of service. Because in that case, we need to send a bill (or several bills) to the patient, the cost of my labor, plus envelope, postage etc.. is what is being charged for...
like a $5 admin fee
I have seen signs in many drs offices about this, wondering if it's legal?
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It's not in place yet, but the provider I bill for is frustrated that so many patients don't pay their copay at the time of service. Because in that case, we need to send a bill (or several bills) to the patient, the cost of my labor, plus envelope, postage etc.. is what is being charged for...
IF there are patients paying late you have to follow the collection laws in your state along with federal debt collection laws. I would NOT call it an administrative fee. In some states your limited on what you can even call it (late fee, interest, penalty etc) and in some states they require the provider to disclose these fees PRIOR to just billing them out which would be in the providers financial office policy the patient should be reading and signing when they come in and even given a copy. Also you can't pass on the provider's COSTS of doing business on to patients that's an absolute no no
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thanks Linda and Richard! ;D