Co-payment or co-pay is a predetermined (flat) fee, based on a contract between an
employer or patient and an insurance company A co-payment that a patient pays
for health care services is in addition as an out of pocket expense to what the
insurance company covers for the service provided. A co-pay is separate from a
deductible and co-insurance. For example, a patient may have coverage through
Blue Cross and Blue Shield. The policy may require the patient to pay a $10 copayment
for each office visit, regardless of the type or level of services provided
during the visit. A patient coming in for daily blod pressure checks could be
required to pay the co-pay for each BP check visit. Co-payments are not usually
specified by percentages. Co-pays are usually paid at the time of service. Some
providers will bill the patient for the co-pays. A huge question that is always asked
is, “Can we write off the co-pay owed by the patient. This question has NO easy
answer. Again, the co-pay is a contractual amount that the patient is required to
pay. Writing off co-pays on a routine basis could be determined by a Government
Inspector as an incentive to have the paient make referrals to the provider. The
insurance company could take the position that writing off a co-pay is a contract
violation. The key word with doing a write off is routine. Each write off should be
on a case by case basis. The patient may be financially unable to pay the co-pay.
If, so then it would be permissible to write off the co-pays. There are at least three
(3) acceptable means of writing off what a patient may owe. (1) The provider has
made every effort to make collection on what is owed and this includes a debt
collection agency. (2) if it would cost more to collect than what is owed. For
example, the patient owes $1.95. It costs $10 in administrative expenses to bill a
patient. Therefore the cost to collect is more than what is owed. The $1,85 could
ne adjusted off as a small balance adjustment, and (3) The patient is financially
unable to pay. The patient must prove they are financially unable to pay. This can
be in the form of wage statements, bank statement, tax statement and lists of
monthly bills such as electricity, food, and other bills.
COBRA Consolidated Omnibus Budget Reconciliation Act.
This is a Federal Law that allows a worker to continue to purchase employer paid
health insurance for up to 18 months if you lose your job or your coverage is
otherwise terminated. For example, your employer provides you with health
insurance through United Healthcare as a benefit of employment. The employer is
going out of business or you leave for another job. Under COBRA, you can
continue to keep your United Healthcare coverage when you leave your employer.
The catch to this is that YOU must continue to pay the premiums that your
employer paid. Some people decline this because they cant afford the premiums.
If the patient kept the COBRA coverage make sure you verify that the coverage is
still in effect at the time of service. The patient may present the United healthcare
insurance card but you find out that the patient did not pay the premiums, so the
coverage was terminated.
Conditional Payment:
A Medicare payment for services for which another insurer is primary payer.
Conditional Primary Medicare Benefits: conditional primary Medicare benefits
may be paid if:
a. The beneficiary, the physician, or the supplier has filed a proper claim with a
TPP in the case of services for which payment under WC or no-fault
insurance can reasonably be expected, and you determine that the insurer
will not pay promptly
b. The beneficiary, the provider, or the supplier that has accepted assignment
filed a proper claim with a GHP or LGHP and the TPP denied the claim in
whole or in part; or
c. Because of physical or mental incapacity of the beneficiary, the physician,
supplier, or beneficiary failed to file a proper claim with the TPP.
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