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what law prevents kickbacks for medicare referrals

by Korbin Thompson Published 2 years ago Updated 1 year ago
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The Anti-Kickback Statute

What is Anti Kickback Law in healthcare?

The federal Anti-Kickback Statute (AKS) (See 42 U.S.C. § 1320a-7b .) is a criminal statute that prohibits the exchange (or offer to exchange), of anything of value, in an effort to induce (or reward) the referral of business reimbursable by federal health care programs. Examples of prohibited kickbacks include receiving financial incentives for referrals, free or very low rent for …

What is considered a kickback in medical billing?

Authorized by the Anti-Kickback Provisions of the Medicare and Medicaid Anti-Fraud and Abuse Amendments of 1977 and the Medicare and Medicaid Patient and Program Protection Act of 1987. Certain financial relationships between referring providers of services and supplies can be defined as kickbacks, i.e., some type of financial reward in exchange for giving or receiving …

Can a person who offers remuneration violate the Medicare Anti-Kickback Act?

Jan 18, 2022 · The anti-kickback statute prohibits any remuneration or payback for a referral. This makes any payment — direct or indirect — or any financial incentive for referrals of Medicare or Medicaid patients illegal. More specifically, it prohibits attempts to induce referrals, period. If there is any intent to induce a referral, the element known as “willful intent” is met. Providers or …

What is the self referral law in healthcare?

Federal physician self-referral law: The Federal physician self-referral law, commonly known as the “Stark Law,” generally prohibits a physician from referring Medicare and Medicaid patients for certain “designated health services” (“DHS”) to an entity with which the physician (or a member of the physician’s immediate family) has a financial relationship, unless certain exceptions apply. …

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What is the Medicare Anti-Kickback Statute?

Anti-Kickback Statute (AKS)

Section 1320a-7b(b), makes it a crime to knowingly and willfully offer, pay, solicit, or receive any remuneration directly or indirectly to induce or reward patient referrals or the generation of business involving any item or service reimbursable by a Federal health care program.

Which act is known as the Anti-Kickback Act?

The federal Anti-Kickback Statute (AKS) (See 42 U.S.C. § 1320a-7b.) is a criminal statute that prohibits the exchange (or offer to exchange), of anything of value, in an effort to induce (or reward) the referral of business reimbursable by federal health care programs.

What is the Stark Law in healthcare?

The Physician Self-Referral Law, commonly referred to as the Stark law, prohibits physicians from referring patients to receive "designated health services" payable by Medicare or Medicaid from entities with which the physician or an immediate family member has a financial relationship, unless an exception applies.

What does the Anti-Kickback Statute not prohibit?

The AKS does not eliminate all patient referrals. Instead, the Statute eliminates referrals motivated by factors other than concern for patient care.Dec 16, 2019

What is the difference between the Stark Law and the Anti-Kickback Statute?

The Stark Law applies only to referrals from physicians and certain itemized services to be paid by Medicare and Medicaid. The Anti-Kickback Statute applies to any referral regarding any expenditure that any federal government healthcare program will pay for.

What is stark and anti-kickback law?

The Anti-Kickback Statute and Stark Law prohibit medical providers from paying or receiving kickbacks, remuneration, or anything of value in exchange for referrals of patients who will receive treatment paid for by government healthcare programs such as Medicare and Medicaid, and from entering into certain kinds of ...

What are exceptions to Stark Law?

For example, the following exceptions to the Stark Law require a written, signed agreement: office space and equipment rental, personal service arrangements, physician recruitment arrangements, group practice arrangements, and fair market value compensation arrangements. 42 C.F.R. 411.357.

What is an example of a Stark Law violation?

An example of a Stark law violation is a hospital paying doctors money to refer cardiac patients to their hospital. Similarly, it is a violation of Stark for a laboratory or outpatient clinic to pay hospitals to refer patients to them.

What is the physician payment Sunshine Act?

The Physician Payments Sunshine Act (Sunshine Act), which is part of the Affordable Care Act (ACA), requires manufacturers of drugs, medical devices, and biologicals that participate in U.S. federal health care programs to report certain payments and items of value given to physicians and teaching hospitals.

Are kickbacks illegal?

A kickback is an illegal payment intended as compensation for preferential treatment or any other type of improper services received. Kickbacks are often referred to as a type of bribery. While kickbacks can take many different forms, they all feature some sort of collusion between two parties.

Which of the following is an example of violating the Anti-Kickback Statute?

Several healthcare providers have violated the Anti-Kickback Statute by offering investment interests, excessive compensation, or space and equipment deals to physicians that is designed to encourage the physician to refer patients or utilize a specific facility or healthcare services.

Why is the Stark Law important?

The Stark Law helps ensure that doctors refer patients for treatment or services based on the needs of the patient rather than based on financial motives.

What is Medicare anti kickback?

The Medicare anti-kickback statute prohibits (1) the willful solicitation or receipt of remuneration in return for referrals of Medicare patients for any service for which payment may be made in whole or in part under Medicare or a State health care program, and (2) the offer or payment of remuneration to induce such referrals [ii] .

What is the anti-kickback law?

Anti-Kickback Law. The Medicare and Medicaid Patient Protection Act of 1987 is referred to as the Anti-kickback Statute [i]. The statute provides criminal penalties for certain acts impacting Medicare and Medicaid reimbursable services. Particularly, the statute prohibits the offer or receipt of certain remuneration in return for referrals ...

What is the Stark law?

Firstly, the anti-kickback statute is a criminal statute prohibiting any willful solicitation or acceptance of any type of remuneration to induce referrals for health services that are reimbursable by the Federal government. On the other hand, unlike the anti-kickback statute, the Stark law prohibits referrals for specific “designated health ...

When did self referral law start?

Congress enacted a physician self-referral law in 1993 after learning the incidence of radiology procedures and physical therapy greatly increased when the patient's physician had an ownership interest in the facility or clinic. This law is the result of legislation introduced by Representative Fortney (Pete) Stark (D-CA), then Chairman of the U.S. House Ways and Means Health Subcommittee. An earlier self-referral law ("Stark I") had been enacted for clinical laboratory services only. The self-referral amendments of the Omnibus Budget Reconciliation Act of 1993 (OBRA '93) went into effect January 1, 1995. However, enforcement has been limited because the final regulations (for Medicare only) were not issued until January 4, 2001, and not effective until January 4, 2002.

Is self referral part of Medicare?

Self-referral is enforced separately from the Medicare and Medicaid anti-kickback laws. While the self-referral law must involve physicians, anti-kickback regulations apply to anyone who "knowingly and willfully offers, pays, solicits, or receives remuneration in order to induce business reimbursed under the Medicare or Medicaid programs." [ 2]

Who is exempt from self referral?

Physician employees or contractors are exempt from the self-referral law as long as their services are. supervised by the referring physician or by another physician in the group practice (meeting the supervision requirements under applicable Medicare and Medicaid payment or coverage rules); rendered in a building where ...

Can you waive Medicare benefits?

Waivers are not allowed unless the Medicare or Medicaid beneficiary qualifies for subsidized services under title V or XIX of the Social Security Act or a provision of the Public Health Services Act

What is safe harbor in Medicare?

The safe harbor regulations define payment and business practices that will not be considered kickbacks, bribes, or rebates that unlawfully induce payment by Medicare or Medicaid programs. The regulations specify allowable financial and referral relationships between physicians or other providers and suppliers.

Objective

To ensure that CUIMC personnel comply with Federal and State law regarding kickbacks and self-referrals, and University rules regarding conflicts of interest.

Policy

CUIMC personnel will not engage in activities that violate the Federal and State laws regarding kickbacks and self-referrals (prohibitions relating to the submission of false claims are addressed in the next subsection of this Manual).

What is a kickback in health care?

According to federal law, a kickback is any remuneration, in cash or in kind, directly or indirectly, overtly or covertly, that is paid in return for patient referrals.

What is a kickback in medical billing?

According to federal law, a kickback is any remuneration, in cash or in kind, directly or indirectly, overtly or covertly, that is paid in return for patient referrals. In determining whether a payment to a physician or other medical provider is a kickback, the courts use the “One Purpose Test.”. Under this test, if “one purpose” is ...

What are the penalties for Medicare fraud?

These include fines, jail terms, and exclusion from Medicare, Medicaid and other federal health programs. Each violation can carry a fine of up to $50,000, in addition to three times the amount of the kickback.

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Summary

  • The Medicare and Medicaid Patient Protection Act of 1987 is referred to as the Anti-kickback Statute[i]. The statute provides criminal penalties for certain acts impacting Medicare and Medicaid reimbursable services. Particularly, the statute prohibits the offer or receipt of certain remuneration in return for referrals for or recommending purchase...
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Content

  • The Medicare anti-kickback statute prohibits (1) the willful solicitation or receipt of remuneration in return for referrals of Medicare patients for any service for which payment may be made in whole or in part under Medicare or a State health care program, and (2) the offer or payment of remuneration to induce such referrals[ii]. Persons who violate the statute shall be guilty of a felo…
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Issue

  • While determining liability under the Anti-kickback Statute, courts have held that it is immaterial whether remuneration induces one in a position to refer or recommend or that there are other legitimate reasons for the remuneration. If the remuneration may induce one to refer or recommend, that would be sufficient to impose liability. Thus, a person who offers or pays remu…
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Cost

  • However, it is to be noted that certain discounts given by suppliers to cost-reporting providers are exempted by the statute and the statute confers discretion on the Secretary of the DHHS to promulgate regulations which identify other practices which do not violate the Anti-kickback Statute[v].
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Safety

  • The Anti-kickback statute has several safe harbors or exceptions whereby arrangements that appear to violate the statute would be exempt from sanction because they do not violate the spirit of the law. The exceptions to Stark law are of a different nature. For instance, under the Stark Act, referrals within a group practice are allowable.
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Purpose

  • Although the Stark Act and the Anti-kickback statute operate in the civil and criminal arenas respectively, the statutes share the common objective of ensuring quality health care through the prevention of illegal referrals and hence are complementary in nature.
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Significance

  • Courts have held that because the Stark Act is legislation that was enacted to combat kickbacks to physicians for referral of lab tests, its violation brings into play the Medicare anti-kickback statute[vi]. The Stark and Anti-Kickback Acts ensure the quality of patient care and deter abuse of federal health care programs by proscribing certain conflicts of interest that arise when third-par…
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