Late Payment Provider Fees: FSA Eligibility
What are late payment provider fees?
It's very common for medical providers to incentive timely payment of medical bills through the imposition of a fee for late payment. These are called late fees and they are not eligible for reimbursement with any consumer-directed healthcare account. Late fees may serve as both an incentive for patients to pay their medical bills on time, as well as means of offsetting the unexpected associated costs faced by the provider as a result of a late payment. There is effectively an additional cost to operating without an expected cash flow for any business or provider. In small amounts, late payments might not affect a provider's financial stability. However, a significant amount of late payments could easily affect a provider's financial stability, and reduce their ability to buy new medical supplies, pay doctors and medical staff, pay taxes and rent, etc. Therefore, late fees are used in part to encourage medical patients to pay their medical bills on time (Fiscal Tiger). Because a late fee must be announced up-front and indicated before the patient receives any treatment or financing support from the medical provider or a third party, there is no eligibility for reimbursing a late fee.