Medical Billing Scam

If you're looking for a home-based job using your computer, advertisements
for medical billing may be appealing. But before you part with your money,
consider this: The Federal Trade Commission has brought charges against
several promoters of medical billing centers for misrepresenting the
earnings potential of their businesses and for failing to provide key
pre-investment information that the law requires.

How it Works

You can find ads for pre-packaged businesses-known as billing centers-in
newspapers, on television and on the Internet. When you respond, you'll get
a sales pitch that may go something like this: There's "a crisis" in the health
care system, due partly to the overwhelming task of processing paper
claims. The solution is electronic claim processing.

Because only a small percentage of claims are transmitted electronically,
the market for billing centers is wide open. These promoters may also tell
you that many doctors who process claims electronically want to "outsource"
or contract out their billing services to save money. Promoters will promise
that you can earn a substantial income working full- or part-time, providing
services like billing, accounts receivable, electronic insurance claim
processing and practice management to doctors and dentists. For your
investment of $2,000 to $8,000, a promoter will promise software, training
and technical support.

Another variation of the scam involves the sell of computer software
programs disguised as job offers. When you respond to the ad you will be
told that you must have this particular software program to perform medical
billing work from your home. Prices can range from $50 to $500. The
software program does not consist of much more than doctor names and
addresses and examples of letters that you may use to contact them.

Reality Check

Very few people who purchase a medical billing business opportunity or
software program are ever able to find clients, start a business and generate
revenues-let alone earn a substantial income and recover their investment.
Competition in the medical billing market is fierce and revolves around a
number of large and well-established firms. Furthermore, those that are
hired as Billers for real employers have years of experience.

Related Topics: Business Opportunities, Work at Home Listing
Copyright 2005

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