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Can a doctor release a patient because of insurance reasons?

Question Details: I was seeing a doctor monthly. When I made my first appointment the doctor told me that she would not accept my health insurance as a form of payment and that it would cost me $200 every month, no checks, no credit cards, debit cards, etc., only cash money. After about a year, I noticed that she had been making claims to my insurer for the $200 that I was paying her every month which my insurance company was not paying for. Anyway, I noticed that her attitude towards me was changing and she was actually being really rude on several occasions and short with me. Then all of a sudden I get a letter from her saying that she was releasing me as her patient and her reason was, "Patient needs to find a provider who will take his health insurance". I thought to myself, you have got to be kidding me, due to the fact that she stated on day one that she would not accept my health insurance as a form of payment. Is this legal for her to do? Can she release me for that reason? Something is just not quite right about this and I would really like to know if a doctor can release a patient because the patient's health insurance company is not paying the claims that the patient's doctor is filing, especially after the doctor stated that they wouldn't be accepting the patient's health insurance as a form of payment to begin with.

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