What is the term for when a provider bills separately for procedures that are part of a major procedure?

The correct term for when a provider bills separately for procedures that are part of a major procedure is unbundling. This practice occurs when separate charges are applied for procedures that are typically included in a comprehensive service or procedure package. Unbundling is generally seen as inappropriate because it can misrepresent the overall cost of care and lead to higher charges for patients and payers.

In medical billing, certain procedures are designated as bundled services, meaning that they encompass various related services that are performed together, typically for a single fee. When a provider intentionally lists each component of a bundled service separately, it misrepresents the nature of the procedures and can be considered an attempt to inflate billing.

Falling under ethical and regulatory scrutiny, unbundling is discouraged, as it complicates the reimbursement process and can lead to audits or penalties from insurance providers. Understanding unbundling is crucial for those in the healthcare reimbursement field because it highlights the importance of accurate coding and billing practices to maintain compliance and ensure proper reimbursement.