Why do many healthcare practices refuse to see patients who do not pay their CO-pays at the time of their visit?

Asked by: Miss Dasia Kunde  |  Last update: August 30, 2025
Score: 5/5 (16 votes)

First, co-pays are typically a small percentage of the overall cost of the visit, and healthcare practices rely on these payments to cover some of their expenses. Second, by requiring co-pays upfront, practices can deter patients from abusing the system or seeking unnecessary medical services.

What to do if a patient refuses to pay a copay?

If, despite gentle reminders and special efforts to collect amounts due, a patient still refuses to cooperate, it may be time to discharge him or her.

Why is the physician not allowed to waive a co pay for a patient?

While it seems like waiving copays is good for patients, the Government takes a different view. Routinely waiving copays can violate the Anti-Kickback Statute and the False Claims Act. These violations can lead to lawsuits worth millions of dollars to the government and whistleblowers.

Is it permissible to routinely waive co-payments from patients as a customer service courtesy?

Conclusion. So, providers can, under certain circumstances waive or discount patient co-payments. But remember, from a legal standpoint, routinely offering discounts to patients is a risky venture. It can implicate various state and federal laws, and can attract the scrutiny of government investigators.

How would you handle a situation where a patient cannot pay their co-pay at their time of visit?

Collect as much of that as possible before, or just after, medical services are provided. Provide a number of payment options to make it easy for patients to pay. Establish an effective program to collect amounts that patients cannot pay at the time of service. Monitor the success of collection efforts[1]

Collecting Patient Co-Pays: Ensuring Compliance and Efficient Workflow

30 related questions found

Can you refuse to see a patient if they owe money?

Unless there is a state law to the contrary, although non-payment is a valid reason to terminate a patient, a patient cannot be refused care while still in the practice because they have not yet paid. This would actually constitute “internal abandonment.”

How do you deal with clients who refuse to pay their debts?

Here are five ways to deal with a nonpaying client.
  1. Follow up immediately. ...
  2. Call them or schedule a meeting. ...
  3. Send a debt collection letter. ...
  4. Hire a collection agency. ...
  5. Consider letting it go. ...
  6. Research your new prospects. ...
  7. Be clear with your payment policies. ...
  8. Send invoices immediately and schedule reminders.

Which of the following is true about waiving Medicare patient copayments?

Medicare allows copayment waivers for any patient below the poverty level. Patients covered by Medicare may petition the agency for waiver of their copayments. Routine waiver of Medicare copayments is considered insurance fraud.

Why is it important that practices collect patient co payments up front rather than sending bills for them?

Patient Budgeting: The POS collection helps patients budget their medical spending based on services needed, and it also spreads payments out when they are still coming entirely out-of-pocket. Instead of receiving a bill for services all at once, a patient can pay $100 upfront and then the remainder when it is billed.

Which of the following is a disadvantage of using an outside billing service to handle patient accounts?

Disadvantages of Using an Outside Billing Service

One significant downside is: Record Access: The office may not have direct access to current balances for patients, leading to complications when addressing billing queries or following up on unpaid accounts.

Can doctors refuse to treat patients who can't pay?

Ability to Pay

Some medical providers may consider refusing to treat because of the patient's inability to pay for treatment. Generally, in non-emergency situations, this is allowed. A private internist, for example, might refuse to schedule a patient's appointment if that patient has unpaid medical bills.

What is an example of a Stark law violation?

What Are Stark Law Violation Examples? To give an example, let's say a physician invests in a freestanding lab diagnostics center and refers their patients, with Medicare, to that lab center for bloodwork. Whether or not they intended to benefit from the referrals, the physician would appear to violate the law.

Is it illegal to write off copays?

1. Never Routinely Write Off Copays or Deductibles. To avoid potential criminal prosecution or False Claims Act liability, do not routinely waive or write off copays and deductibles. This type of conduct raises red flags and is likely to violate your payer contracts.

Can a doctor fire a patient for non payment?

Physicians may decide to dismiss a patient for a variety of reasons such as nonpayment, non-compliance and/or inappropriate behavior. Whatever the reason, a patient dismissal is a subject of concern for everyone and should be handled carefully.

Is it ever ethical to waive a copay?

Providers sometimes waive patients' cost-sharing amounts (e.g., copays or deductibles) as an accommodation to the patient, professional courtesy, employee benefit, and/or a marketing ploy; however, doing so may violate fraud and abuse laws and/or payor contracts.

Can hospitals refuse service or care if you can't pay?

Under EMTALA, private hospitals that receive public funds through Medicare must provide emergency care to patients in need, regardless of their ability to pay. Now, hospitals are also legally prohibited from releasing a patient to another facility or refusing additional treatment until the patient is stable.

Why do doctors charge more than insurance will pay?

It is entirely due to the rates negotiated and contracted by your specific insurance company. The provider MUST bill for the highest contracted dollar ($) amount to receive full reimbursement.

What is the No Surprises Act?

The No Surprises Act protects consumers who get coverage through their employer (including a federal, state, or local government), through the Health Insurance Marketplace® or directly through an individual health plan, beginning January 2022, these rules will: Ban surprise billing for emergency services.

Can a doctor make you pay upfront?

Doctors want to be sure that they will be compensated for the care they provide. Fourth lesson: It is not illegal to be asked to pay what you may owe in advance for a major medical event. But if you are asked to pay upfront, legally you don't have to.

Why the physician is not allowed to waive a co pay for a patient?

Routine co-pay waivers and deductible waivers violate the law in two ways. The first is that it violates the Anti-Kickback Statute which prohibits medical providers from offering, soliciting, paying, or receiving anything of value in exchange for referrals of Government Health patients.

What are common reasons Medicare may deny a procedure or service?

Medicare's reasons for denial can include:
  • Medicare does not deem the service medically necessary.
  • A person has a Medicare Advantage plan, and they use a doctor who is outside of the plan network.
  • The Medicare Part D prescription drug plan's formulary does not include the medication.

What is an example of an anti kickback statute?

Examples of prohibited kickbacks include receiving financial incentives for referrals, free or very low rent for office space, or excessive compensation for medical directorships. Other kickbacks include waving copayments, either routinely or on a selective case-by-case basis.

Can you sue a client for non-payment?

Sometimes invoices are past due 30 days, 60 days, or even 90 days, and they've not been paid. Perhaps you've sent multiple invoices, followed up by both phone and email, and you're still not paid. You do have the option to sue for non-payment, but sometimes that needs to be a last resort option.

What is the final demand letter?

A final demand letter (before legal action) is a crucial step in the debt recovery process. It's your definitive attempt at resolution before considering legal action. While the Internet is flooded with templates and how-tos, the real power of a final demand letter lies in its strategic execution.

How do you deal with a client who ignores you?

More tips for when a client ignores you
  1. Put yourself in their shoes. People can get busy and overwhelmed with other commitments. ...
  2. Avoid assuming the worst. ...
  3. Try another method of communication. ...
  4. Vary your approach. ...
  5. Use motivational language. ...
  6. Be honest with yourself about your relationship.