What is Stark Law? Stark Law, also known as the Physician Self-Referral Law, is where if a physician is related to another health care provider, they cannot recommend a Medicare or Medicaid patient to them and doing this would be known as a self-referral. Stark Law originated from Californian Congressman Fortney “Pete” Stark; it was added as an amendment to the Social Security Act. However, are a few exceptions: one of which was finalized in 2021 and stated that arrangements can be made where if the health care provider pays compensation (of under $5,000) to the physician in exchange for the items provided and thus would not be blocked by the Stark Law. In summary, a physician or direct family member is not allowed to send a Medicare or Medicaid patient to another individual if they have any financial ties with them.