Law and Ethics Practice Exam 2026 - Free Practice Questions and Study Guide

Billing for missed appointments can constitute insurance fraud because it involves charging for services that were not rendered. In the context of healthcare and insurance, providers are only allowed to bill for services that have been actually performed. If a provider submits a bill for a missed appointment, they are misrepresenting the situation to the insurance company, as they are claiming that a service occurred when it did not. This misrepresentation is a key element in defining insurance fraud, as it seeks to obtain payments or benefits under false pretenses.

In contrast, providing a correct diagnosis, submitting accurate insurance claims, and offering discounts for cash payments do not involve deception or misrepresentation of services provided. These actions remain within ethical and legal boundaries of billing practices. A correct diagnosis is essential for appropriate treatment and billing. Accurate claims reflect the actual services provided, ensuring transparency in healthcare billing practices. Offering cash discounts is often a legal incentive for patients and does not necessarily involve the insurance system at all, assuming it falls within legal guidelines.