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Profile picture for Jeff Marchi @jeffmarc

@rlpostrp
This” Kickback” Scheme is not quite as simple as described

Federal law generally prohibits insurance companies from paying doctors directly to withhold medically necessary care. Incentive plans must follow regulations (such as Stark Law and Anti-Kickback Statute) ensuring bonuses are not solely based on reducing care.

Bonuses are typically tied to quality benchmarks, ensuring that care is not withheld to the detriment of patient health

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Replies to "@rlpostrp This” Kickback” Scheme is not quite as simple as described Federal law generally prohibits insurance..."

@jeffmarc Exactly. Enough physicians expressed their ethical distain for bonus pools, but they do still exist. Health plans offer the bonuses under the guise of creatively titled incentive programs, for achieving "quality" or "outcome" goals, etc. But all of that stuff resulted in the "capitated" plans that I mentioned in my previous reply.
The Stark legislation was a bit different...it is basically about discouraging physicians from self-referral from which they could financially benefit. Specifically, it addresses a referral by a physician who receives Medicare or Medicaid reimbursement, to any healthcare provider entity for more patient care that is billable by Medicare or Medicaid, "if" the physician or an immediate family member/relation has a financial interest in the referred healthcare provider entity. An example could be an Orthopedic physician (or family member) who has a financial interest in a separate, outpatient physical therapy facility, to which that Orthopedic physician refers his patients for therapy. The Anti-Kickback legislation was around since ~1972 or so. It proceeded the Stark legislation that was implemented in 1989.