Insurance Payment to Physicians by Credit Cards
Some small secondary market insurance companies are making "expedited payments" to physicians or physician groups via an EOB with a MasterCard or other credit card number on it. Rather than negotiating a check, the Practice is then forced to run the reimbursable amount as a credit transaction, which costs them substantial transaction fees . This issue has been going on for a while and payers do make money on the cash-back while physicians lose money on each transaction. The AMA adopted a
resolution to work toward ending this practice but not sure of any outcome.
There is an educational resource at the following link.