True or False: Because the cost of processing insurance claims is higher than the cost of accepting cash payments, chiropractors are allowed to charge a significantly higher price to patients who request that the chiropractor send their claims to an insurance company.

Question

27-11-2023
Business

High School

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True or False: Because the cost of processing insurance claims is higher than the cost of accepting cash payments, chiropractors are allowed to charge a significantly higher price to patients who request that the chiropractor send their claims to an insurance company.

Answer :

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snehagupta06 snehagupta06 · Answer 1 · 2024-08-06T17:45:46-04:00

Final answer:

The statement is false. It's unlawful under the Health Insurance Portability and Accountability Act (HIPAA) to charge patients more for the same service based on whether it's billed to insurance or paid in cash.

Explanation:

False, the statement is not entirely accurate. While the administrative process associated with billing insurance can incur costs, it is illegal under the Health Insurance Portability and Accountability Act (HIPAA) , for chiropractors, or any healthcare provider, to charge patients a significantly higher fee for the same service simply because they are billing it to an insurance company rather than accepting cash payment. Practices such as this are considered 'balance billing' and can be penalized.

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