MEDICARE REASSIGNMENT

Under the federal Medicare statute, a physician cannot reassign her/his right to receive payment from Medicare, unless a specific exception applies. This is an important issue because (depending on the physician specialty) an average of 35% of patients are covered by Medicare.

The exceptions to this prohibition are for assignment to the physician's employer; a facility (e.g., a hospital); and an organized health care delivery system or clinic. It is important to ensure that a proposed physician compensation arrangement complies with these rules because failure to do so can result in: termination by HCFA of a physician's Medicare participation agreement; criminal penalties - fine of not more than $2000 or imprisonment of not more than six months or both; and delay/withholding of payment from HCFA.

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