Can an OBS practice bill third party insurers for a facility fee under a different corporate entity such as a business corporation or a professional corporation ?
No, this might be illegal if the rate has not been negotiated with the third party insurer. In order to collect the facility fee, the different corporate entity, with its own taxpayer identification number, might be holding itself out as a professional entity. Under State Education Law (SEL) ยง 6513, the unauthorized use of a professional title is a crime. In addition, this might also be considered billing fraud. Both of these possible criminal actions might affect the entity billing the facility fee as well as the OBS practice itself. Only the OBS practice should be submitting bills to third party insurers.
Related Questions
- Can an OBS practice bill third party insurers for a facility fee under a different corporate entity such as a business corporation or a professional corporation ?
- Do all agents who sell, solicit or negotiate insurance for the business entity need to be licensed and on the business entity corporate structure?
- May an OBS practice contract with an entity that promises to collect a facility fee and a professional fee from third party insurers?
