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Why do medical providers always submit charges for more than they know insurance will allow?
Wiki User
∙ 12y ago
Providers bill their rates based on a schedule regardless of what they will actually get paid. In part it is a negotiating tactic. They claim they need to get $1000 for the procedure and the negotiated rate is only $200. It also shields them from any claims of discrimination in billing. They bill everyone $1000 regardless of what they actually settle on. Every contract may pay something different.
Wiki User
∙ 12y ago
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