No fee should be lower than the Medicare - period. If it is, then Medicare has the right to come back and indicate the practice has charge Medicare too much and take money back. Saying they are using a different code will not matter if the service is the same. Medicare has people out there that will pose as a self pay and then you are caught.
It is a very dangerous practice that I recommend you stay away from.
The practice could use the U&C rate and then discount from there for payment at time of service. However, there needs to be logic to substantiate this if it goes below the medicare rate that can be substantiated.
Here is one link that might help you
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