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Usual and customary fee?

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Hi all,

Today I've been reviewing our EOBs and noticed that a couple of PPO plans we

aren't contracted with are reducing the amounts we bill to a lower figure

that they call the " usual and customary fee " , and then pay us on this basis.

They didn't pass on the difference as part of the patient's responsibility.

They just wrote it off. Now I understand that if we were a contracted

provider we have to adhere to allowable rates, but in these cases we aren't

a contracted provider!

I googled " usual and customary " and got a quick impression that " usual and

customary " isn't usual and customary at all. It varies from insurer to

insurer based on their own formulas. It is in essence another way to lower

the amount paid to the provider.

Is it possible to contact the insurer and demand payment for the amount we

actually billed?

Has anyone tried this and had any success?

Mendelssohn

Practice Manager

Mendelssohn, MD, FACOG

Obstetrics & Gynecology

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