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Attorney2, Attorney
Category: Legal
Satisfied Customers: 6875
Experience:  29 Years In General Practice,
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We were told that it is "illegal" to give away certain services

Customer Question

We were told that it is "illegal" to give away certain services for free while charging insurance companies for the same services. We don't know that it truly is illegal, or if it is just against the rules of the insurance companies. However, it seems "wrong" to us that we would be prohibited to giving any service away to anyone that we saw fit to give a service away to. Do you have any insight on this issue?
Submitted: 4 years ago.
Category: Legal
Expert:  Attorney2 replied 4 years ago.
Hello and thank you for your question. What type of services would you be giving away for free? Can you explain your situation a little more?
Customer: replied 4 years ago.
Chiropractic adjustments
Expert:  Attorney2 replied 4 years ago.
Are the individual insurance providers telling you that this is a violation of an insurance law?
Customer: replied 4 years ago.

No, we were told by another Chiropractor that it was illegal, but have no quoted law from them on why they believe that.

Expert:  Attorney2 replied 4 years ago.
I am unaware of any prohibition against providing free services unless this is a violation between the insuranance company and the doctor. Can you provide me with some additional information regarding what type of service the cbiropractor you spoke to is stating that is prohibited and why. tor was referri g to and to whom it be illegal
Customer: replied 4 years ago.

They actually were stating that as a medical clinic that if you charge the insurance company for 24 visits of chiropractic and then give the person another 12 visits for free that they believed that would be illegal. I don't know what justification that they are using, but they said that it is not ok to charge the insurance company for something and then give that same thing away for free as well.

Expert:  Attorney2 replied 4 years ago.
That seems to be different than your initial question. This would be something you would need to work out with the insurance provider. For example for so many visits the patient gets one free service. Have you discussed this with the insurance provider?
Customer: replied 4 years ago.

no, we have not. I just wanted to know if there was anything in the actual law that would make this illegal.

Expert:  Attorney2 replied 4 years ago.
When you clarified the situation it became clear that an insurance provider could have an issue with this practice. It is not illegal per se, however the insurance provider could decide to stop working with you based on the practice. You would want to work out the terms with the provider.