Charging < Medicare vs Private Insurance < Medicare -- Urban Myth?

[Guest guest]

Much discussion and common wisdom suggests that doctors shouldn't discount their fees to less than Medicare.

 

The thought being -- if you routinely discount to less than Medicare fees -- then your actual fees are less than Medicare and Medicare will want those lower fees, too.

 

Although, some feel that if the discount is for " prompt pay " at time of service, then you can discount less than Medicare Fees -- since you would be happy to give Medicare the discounted fee if they would pay at the time of service, too.

 

I have my own opinions on this issue, but the question this brings up is....

 

Our recent poll suggests that some docs -- as a matter of routine (necessity) take private insurance that pays them less than Medicare rates.

 

Why isn't Medicare coming into these pratices and saying -- hey, I want a piece of that lower fee action - if you will accept private insurance at a lower rate than Medicare -- Medicare wants the lower rate, too!

 

But I don't hear docs in these low private pay pockets mentioning Medicare doing this.

 

Is the " never charge less than Medicare fee schedule or you'll be in trouble " an urban myth?

 

Inquiring Minds want to know.

 

Locke, MD