I do not believe that physicians are specifically prohibited from treating family members. That having been said, however, the usual federal guidelines would definitely apply when billing Medicare: medical necessity and fraud/abuse guidelines. For example, it would not be wise to waive copayments or bill for a condition that was not medically necessary or that was non-covered (like a cosmetic procedure). I can see where it might be tempting to write off grandma's copay.
There's an ethical bend to this question, though, in terms of health boundaries. Too close for comfort, in my book, but not everyone has a problem with it, I guess.
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