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Archive for September, 2013|Monthly archive page

What Exactly Did The Omnibus Rule Allowing Regarding Patient Restriction Of Disclosure To Insurance Carriers

In Uncategorized on September 4, 2013 at 6:31 pm

Remember that pesky contractual provision in your provider participation agreements that obligates you to submit all claims for patient services to the insureds’ carrier(s) for processing?  Even if the patient didn’t want that claim to be filed?  Well, Congress has spoken, and the Omnibus Rule contains a provision that, as federal legislation, trumps those contracutal obligations. 

The Omnibus Rule now allows patients to pay a medical bill in full at the time of service and request that the provider NOT file a claim to the patient’s insurance company.  Again, this is a complete contradiction of previous rules, which demanded that patients and providers comply with their contractual obligations to file all claims to the carrier providing insurance coverage for the patient.  So, providers, take note:  if a patient pays his/her bill in fill at the time of service, and requests that your office not submit the claim to his/her insurance carrier, any submission constitutes a violation of HIPAA and the Omnibus Rule going forward!

This disclosure restriction relates only to services for which patient has paid in full.  So, if the patient pays by credit card, and that card is denied or if the patient pays by check and the check bounces, then the provider must to attempt again to obtain payment in full from the patient (absent sending to collections).  If the provider makes that attempt and is unable to obtain payment, then the he/she may finally submit the claim to the patient’s insurance company despite patient’s initial desire not to disclose the services.  Essentially, while the provider does need to try to comply with the patient’s desire for privacy, he/she does not need to forego compensation.

M.E.D.I.C., Inc.  would suggest that when the patient pays in full and asserts his/her right to restrict disclosure of the services, providers have those patients complete and sign a form to be maintained on file that identifies :

  1. whether this is a one-time claim restriction or permanent restriction on disclosure;
  2. that the restriction would need to be for the entire claim, not portions of the visit, for attempting to select only certain elements of a claim to restrict may be difficult due to “bundling” of procedures…  It is much more administratively efficient if the restriction is is an all-or-nothing proposition;
  3. the consequences of payment retraction (the denied credit card, the bounced check, etc…) – in other words, explain to the patient that in the event of these non-payments, the practice will make one attempt (only one attempt because of the short timely filing for some carriers) to collect payment.  Absent payment in full, the practice will then file the claim(s) to the patient’s insurance carrier – despite his/her previous desire to restrict disclosure;
  4. that a perhaps unforeseen consequence of this restriction is that the patient’s payment will not be applied to his/her deductible

As always, please contact M.E.D.I.C., Inc. should you have any questions related to this, or any other, medical billing/revenue cycle management matter.

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