how to report medical provider not giving back patient refund

by Dr. Valentin O'Conner 6 min read

Patient Refunds: Best Practices for Providers - InstaMed

24 hours ago The NPDB is a registry for all medical and dental malpractice claim settlements; all professional liability insurers must report all settlements or verdicts. Many of you say you prefer not to have your name in the Data Bank. If you refuse the refund and a claim is made which results in a settlement, the Data Bank report must be filed. >> Go To The Portal


Keep good records and make a written request by certified mail. If that doesn't work go to the office and demand a refund and explain that you will file a complaint (not sure with who tho). Or count it as a credit and use it on your next visit? 12/02/2008 15:32 Subject: If you overpay your bill and doctor does not refund, what to do? Anonymous

Full Answer

How do I issue a refund to a patient?

The most efficient way for staff to issue a refund is the “one-click” method. Within your source system, staff should be able to access the patient’s payment receipt and, in one click, issue payment back onto the original payment method. Easily View and Reconcile Refunds

What happens if hospitals don’t respond to health plan refund requests?

What is perfectly clear is the financial ramifications of hospitals not responding to health plan refund requests. Whether the alleged overpayment by the health plan is valid or not does not matter when it comes to the clock starting on the interest owed to the health plan.

Can a physician and surgeon and a dentist refund a patient?

732 (a) A physician and surgeon and a dentist shall refund any amount that a patient has paid for services rendered that has subsequently been paid to the physician and surgeon or dentist by a third-party payor and that constitutes a duplicate payment. The refund shall be made as follows:

Should your practice refund patient overpayments?

That’s why practices must familiarize themselves with the laws surrounding patient overpayments—and when it’s appropriate to refund them. So, processing and returning overpayments (a.k.a. “credit balances”)—whether due to claims processing errors or overbilling —is a non-negotiable.

How do I get my money back from a medical provider?

Contact the insurance company. Even if the insurer did not notice the overpayment, the medical practice legally must return overpayments. Contact them in writing and keep a copy. Ask the insurer to explain the payment when they request a refund.

How do you handle a patient refund?

Here are three best practices for refunds in healthcare payments.Go Electronic. ... Easily View and Reconcile Refunds. ... Put Controls in Place. ... Estimate Patient Responsibility. ... Check Patient Eligibility in Real-Time. ... Give Patients Self-Service Payment Tools.

What is refund process in medical billing?

What is Refund processing in medical billing? It is the process of returning back the excess or additional money paid by the insurance or patient on request. If the payment is received in excess than the specified amount, insurance or patient can request for a refund.

What are the laws that revolve around patient refunds in California?

The refund shall be made as follows: (1) If the patient requests a refund, within 30 days following the request from that patient for a refund if the duplicate payment has been received, or within 30 days of receipt of the duplicate payment if the duplicate payment has not been received.

What does recoupment mean in medical billing?

A: A recoupment is a request for refund when we overpay an account. Some of the most common reasons for a recoupment are: We are not aware of a patient's other health insurance coverage.

Can insurance company request money back?

Under California law, if a provider does not contest a notice of overpayment, he or she is required to reimburse the insurance plan for the amount requested, within 30 working days of receipt of the notice.

What is withhold in medical billing?

Withhold means a percentage of payments or set dollar amounts deducted from a physician's service fee, capitation, or salary payment, and that may or may not be returned to the physician, depending on specific predetermined factors.

What is underpayment in medical billing?

What is underpaid in medical billing? Under-payments are transactions where the insurance company reimburses at a lower level than the agreed-upon rate per the contract.

Does California have a law against surprise medical bills?

Beginning July 1, 2017, California law protects consumers from surprise medical bills when they get non-emergency services, go to an in-network health facility and receive care from an out-of-network provider without their consent.

Is medical balance billing legal in California?

The new federal law, which is largely in sync with California's, bans balance billing for nonemergency care by out-of-network providers at in-network facilities and for most emergency room care at any facility.

Is there a statute of limitations on medical bills in California?

Statute of Limitations exceptions on debts in California Generally, the statute of limitation for most consumer debts arising from written contracts in California expires after four years. This includes credit card debts, auto loans, personal loans, private student loans, and medical debts.

What is patient refund?

1. What do you mean by refunds processing in medical billing? After any medical services are rendered to the patient, the reimbursements are made to the healthcare provider's account. Due to certain errors, the payment might be in excess.

Is a refund an admission of liability?

In most cases, a fee refund is not an admission of liability. Clarify to the patient or parent that your treatment was appropriate, within the standard of care.

What is the difference between offset and refund?

This is a kind of an adjustment which is made by the insurance when excess payments and wrong payments are made. If insurance pays to a claim more than the specified amount or pays incorrectly it asks for a refund or adjusts / offsets the payment against the payment of another claim. This is called as Offset.

What is credit balance in medical billing?

Credit Balance – refers to overpayments received in addition to the charges for the medical services provided. Simply put, it is the excess payment made incorrectly by either the payers, the insurance company, or the patient to the healthcare organization.

What happens if you collect the wrong copay amount?

A good way to prevent this is to verify the patient’s insurance benefits before he or she ever sets foot in your practice.

Is it illegal to not notify patients of overpayment?

Yes, absolutely. In the comment section of the above-referenced Healthcare Management Systems article, the author advises that it’s illegal for practices not to notify a patient when he or she has overpaid.

Can a patient request a refund?

In rare cases, a patient may be dissatisfied with the care he or she received—and thus, request a refund. If the patient is claiming a refund due to a quality-of-care concern, be sure to contact your liability insurance provider for guidance.

What happens if you get your money back?

If you get your money back, it may not be under pleasant terms and the doctor/patient relationship may need to be severed. This will be the case until the industry begins to see the value in the power of a refund. To be objective, try to remember that doctors are not perfect. They are in fact, human.

How much does it cost to see a doctor for 40 minutes?

Approximately 40 minutes with the doctor is $234. Typical co-pays for a visit to a primary care physician range from $15 to $25. Co-pays for a specialist will generally be between $30 and $50.

Can a doctor reach out to you?

The doctor may or may not reach out to you. The doctor’s staff may or may not reach out to you. But you may find that a check comes in the mail along with a release form stating that you agree not to pursue a claim against the doctor. Congrats! You’ve won your refund. It took a little effort but you did it.

Is treatment failure a malpractice?

Treatment failure is not really their fault because at least they tried. If there is a malpractice element to it, a refund might be construed as an admission of guilt; so they won’t provide a refund there either. Of course, if there is a malpractice element, you should probably consult an attorney.

Can doctors give you money back?

What doctors don’t want you to know is that they can and sometimes will give you the money back; you just need to provide them a good reason to do it. It’s simple: when you have received bad service or no service, sometimes a refund is in order. Ultimately, you are paying for “ care ”.

What happens if you refuse a refund?

If you refuse the refund and a claim is made which results in a settlement, the Data Bank report must be filed. In addition to this entity, many states also mandate reporting of malpractice settlements. Even if the patient requests a full refund, that does not mean he/she expects to receive a full refund.

Should doctors refuse a refund?

To some doctors, refusing a refund is the right thing to do.

Can you refund an orthodontic fee?

Orthodontists tell us you prefer satisfied customers. If someone is dissatisfied, refunding some or all of the fees may be an appropriate way to resolve the issue. In other words, use a refund of fees as a business decision and a public relations tool. In most cases, a fee refund is not an admission of liability.

Is refunding fees a small price?

The handling processes of both regulatory complaints and claims can be lengthy and stressful; refunding fees is often a small price to pay to avoid having to defend yourself in more formal complaint actions.

Can a doctor refund a fee?

Some doctors will refuse to honor a request for a fee refund despite problems with the treatment or the patient. They assert that they have worked hard for their money, that any problems were precipitated by the patient and under no circumstances will they refund the fee.

Is a fee refund an admission of liability?

In most cases, a fee refund is not an admission of liability. Clarify to the patient or parent that your treatment was appropriate, within the standard of care. Tell them your goal is to facilitate customer satisfaction and if refunding some or all of the fees will accomplish that, you are willing to do so, if they are willing to sign a release.

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How often should a health plan send a refund letter?

A key step would be for the provider to create a spreadsheet of all refund letters from the health plan every 25 days. Then, once a month, the provider should send one response letter, incorporating the spreadsheet of refund requests.

How long can an insurer overpay?

In many states, an insurer may pursue most overpayments for no more than a couple of years. However, self-insured companies, which are those that pay their own employees’ health claims directly rather than buy insurance for that purpose, are not bound by such state laws.

Can a health plan overpay a provider?

A health plan may simply make a calculating mistake and pay a provider more than the contracted amount for a service. Or a provider may be paid for a service that was not covered under the patient’s health insurance policy. In many states, an insurer may pursue most overpayments for no more than a couple of years.

When is the HSA return deadline?

The deadline is April 15 of the year following the year of distribution, however, since the HSA custodian has the option not to accept a return of mistaken distribution, you are probably better off returning the mistaken distribution before the end of the year.

Can you reimburse yourself for medical expenses after tax?

One rule that many taxpayers do not know is that you may reimburse yourself for qualified medical expenses that you paid with after-tax dollars at any point in the future, so long as the original expense was incurred after the HSA was created.

Step 1 – Politely Discuss It with The Office Staff

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Talk to the office staff right away if you had a bad experience. Simply explain the situation for what it is and inquire about their refund policy. They probably will not have one, but explain that you feel a refund is necessary considering the circumstance. Be polite and expect to hear that they do not provide such refunds
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Step 2 – Send A Polite Letter to The Doctor

  • As soon as you get home, write down the details of your experience. You don’t want to forget anything. Then, write out a very polite letter to the doctor’s office. This letter should be a simple letter that explains your position and requests a refund for the very specific reasons that you will list. This letter should be sent out right away. Save a copy for yourself and make sure it is addres…
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Step 3 – Send A Follow-Up Letter with A Time Limit

  • Write another letter, very similar to the letter you wrote before. Only this time, you are including a sentence that states that you expect a refund within thirty days of the date of the letter. This is merely a formality and an escalation from where you were previously. You may also choose to politely say that you are willing to sign a release of claim but that a refund is of particular import…
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Step 4 – It Has Begun

  • If you have walked into Step 4, you’ve probably lost your doctor. So one last time, you need to decide what is more important (your refund or your doctor). If you move forward from here, there is a very good chance that you will not have this doctor in the near future and you may still not get your refund. Don’t worry, if you don’t get your refund, you will have made it worth it. This is a neg…
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Step 5 – Follow Through with Your Promises

  • Before you do this part, you should be aware of libel and slander. Libel and slander are types of defamation. Libel is an untrue defamatory statement that is made in writing. Slander is an untrue defamatory statement that is spoken orally. Defamation is an area of law that provides a civil remedy when someone’s words end up causing harm to your reputation or your livelihood. The p…
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