Both private insurers and Medicare require the physician to make reasonable efforts to collect co-pays that are billed to the patient. Discounts A discount is a reduction in the normal charge based on a specific amount of money or a percentage of the charge. However, there are things that the physician must beware of in doing this. The discount must apply to the total bill, not just the part that is paid by the patient. In this situation, the discount would only benefit the insurance company.
Discounts raise the issue of the physician's customary charges for a procedure.
This entitles the plan to pay the lowest charge the physician bills to anyone. Any systematic pattern of discounts could trigger a reduction in the physician's allowable reimbursement schedule to the discounted price. You may also charge for some visits and not for others. Many pediatricians do not charge for the first follow-up visit for otitis media. This increases the likelihood that the child will be brought back for the recheck The insurance company is also getting a free visit, but at least the patient is getting the care.