Module 113 Final Review

When a physician accepts assignment of benefits, it means that they agree to receive direct payment from the insurance company for the services provided to the patient. In this case, the document that is sent to the physician along with the payment voucher is referred to as an Explanation of Benefits (EOB). The EOB provides a detailed breakdown of the services rendered, the amount billed, the amount covered by insurance, and any remaining balance that may be the responsibility of the patient.

The correct procedure to collect a copayment on a managed care plan is to collect the copayment when the patient arrives for the office visit. This means that the patient is expected to pay the copayment amount at the time of their appointment.

In the Medicare program, there are five levels of redetermination. Redetermination is the process of reviewing and reconsidering a claim or decision that has been made. These levels include reconsideration by a Qualified Independent Contractor (QIC), hearing by an Administrative Law Judge (ALJ), review by the Medicare Appeals Council (MAC), review by a federal district court, and review by a federal appeals court. These levels provide multiple opportunities for a claim or decision to be reviewed and potentially changed.

Medicare is a federal health insurance program because it is administered by the federal government and provides health insurance coverage to individuals who are 65 years old or older, as well as certain younger individuals with disabilities. It is funded through payroll taxes and premiums paid by beneficiaries, and it is available nationwide, not limited to a specific state, region, or locality.

If a payment problem arises with an insurance company and they fail to address claims and surpass the time limits for claim payment, it is advisable to reach out to the state insurance commissioner. The state insurance commissioner is responsible for regulating insurance companies within a specific state and ensuring they comply with state laws and regulations. They can investigate complaints, mediate disputes, and take appropriate actions against the insurance company if necessary. Therefore, contacting the state insurance commissioner would be the appropriate course of action in this situation.

To inform a new patient of office fees and payment policies, all of the above options should be done. Sending a patient information brochure can provide detailed information about the fees and policies, allowing the patient to review it at their convenience. Sending a confirmation letter can serve as a reminder and also include the necessary information about fees and policies. Finally, discussing fees and policies at the time of the initial contact ensures that the patient is aware of the financial aspects before proceeding with any treatment.

The correct answer is to check the amount of payment on the patient's financial accounting record. This is because the financial accounting record keeps track of all the payments received from the private insurance carrier. By comparing the amount mentioned on the Explanation of Benefits (EOB) with the patient's financial accounting record, one can ensure that the correct payment has been received. The other options listed, such as the practice's day sheet, copy of the CMS-1500 form, or the patient's insurance contract, may not provide the accurate payment information needed for verification.

Chapter 13 bankruptcy is considered "wage earner's bankruptcy" because it allows individuals with regular income to create a repayment plan to pay off their debts over a period of three to five years. This type of bankruptcy is designed for individuals who have a steady income and want to keep their assets while repaying their debts. It allows them to catch up on missed mortgage or car payments and avoid foreclosure or repossession. Chapter 13 bankruptcy is different from Chapter 7, Chapter 11, and Chapter 12, which have different eligibility criteria and purposes.

Medicare Part A is a government program that provides hospital insurance coverage. It is run by the Center for Medicare and Medicaid Services (CMS), which is responsible for administering the Medicare program. The CMS oversees the implementation and management of Medicare Part A, ensuring that eligible individuals receive the necessary coverage for hospital stays, skilled nursing facilities, and other related services. The CMS works in collaboration with healthcare providers, beneficiaries, and other stakeholders to ensure the effective delivery of Medicare Part A benefits.

Medicare provides a one-time baseline mammographic examination for women ages 35 to 39, which means they can get this examination only once during that age range. For women 40 years and older, Medicare covers preventive mammograms, which are screenings done to detect breast cancer before any symptoms appear. These preventive mammograms are covered once a year, allowing women in this age group to get a mammogram annually to ensure early detection of any potential issues.

When downcoding occurs, payment will be less. Downcoding refers to the process of reducing the level or complexity of a billed service by a healthcare provider. This can happen when the documentation or medical records do not support the level of service that was initially billed. As a result, the insurance company or payer may reimburse the provider at a lower rate, leading to a decrease in payment.

Some senior HMOs may provide additional services that are not covered by Medicare, such as eyeglasses and prescription drugs. This means that while Medicare may not cover the cost of eyeglasses and prescription drugs, seniors who are enrolled in certain HMOs may have access to these services through their HMO plan.

Outsourcing refers to the practice of hiring an external company or service to handle specific tasks or functions that were previously performed in-house. In the context of the given question, the employment of a billing service involves outsourcing the billing process to a third-party service provider. This allows the organization to delegate the responsibility of billing to a specialized service, which can help streamline operations, reduce costs, and improve efficiency.

The correct answer is to pay the physician within 2 to 3 weeks and honor the assignment even before the company recovers their money from the patient. This is because the insurance company admits that they made a mistake by paying the patient instead of the physician. Therefore, it is their responsibility to rectify the error by paying the physician promptly and honoring the assignment of benefits. Waiting for the company to recover the money from the patient before paying the physician would be an unnecessary delay and unfair to the physician.

In a TRICARE case, a request for an independent hearing may be pursued if the amount in question is $300 or more. This means that if the disputed amount is $300 or higher, the person involved in the TRICARE case has the right to request an independent hearing to further discuss and resolve the issue.

Before any services are provided, the patient is likely to be the most cooperative in furnishing details necessary for a complete registration process. This is because at this stage, the patient has not yet received any services or treatment, so they are more likely to be focused on providing accurate and complete information for the registration process. Once services are provided or after the first statement, the patient may be preoccupied with their medical condition or the treatment they have received, making it less likely for them to be as cooperative in providing the necessary details. Similarly, in a follow-up telephone call, the patient may not have the same level of attention or willingness to provide the required information as they would have before any services were provided.

The medical assistant should state the office policy and ask for the full fee because the policy of the medical practice is to bill only for charges in excess of $50. Therefore, the patient should be informed about the policy and asked to pay the full fee for the office visit.

When writing a collection letter, it is recommended to use a friendly tone and ask why payment has not been made. This approach helps to maintain a positive relationship with the patient while addressing the issue of non-payment. By using a friendly tone, the letter conveys concern and understanding, which may prompt the patient to provide an explanation for the delay in payment. This approach is more likely to result in a productive and respectful conversation about the outstanding payment, rather than making assumptions or accusations about the patient's intentions or oversight.

If an insurance claim has been lost by the insurance carrier, the procedure(s) to follow would be to ask if there is a backlog of claims at the insurance office, submit a copy of the original claim, and verify the correct mailing address. These steps are necessary to ensure that the claim is properly processed and not lost again. By asking about a backlog, it allows the insured to understand if there may be delays in processing claims. Submitting a copy of the original claim helps provide the necessary documentation for the insurance carrier to review. Verifying the correct mailing address ensures that any future correspondence or payments are sent to the correct location. Therefore, all of the above options are necessary in this situation.

When an insurance claim has a bundled service, it means that multiple services or treatments are combined into a single claim. In this case, the insurance company would pay for the bundled service, as long as it meets the policy's coverage criteria.

TRICARE appeal procedures have three levels of review. This means that if an individual is dissatisfied with the decision made at the initial level, they have the option to request a review at two additional levels. This allows for a thorough and fair assessment of the appeal, ensuring that all parties involved have the opportunity to present their case and have it reviewed multiple times if necessary.

The insurance billing specialist needs to monitor accounts receivable in order to evaluate the effectiveness of the collection process. This is because accounts receivable represents the amount of money owed to the company by its customers for services provided. By monitoring accounts receivable, the specialist can track the amount of outstanding payments and determine if the collection process is efficient in collecting these payments.

A debit card is a type of card that allows bank customers to make purchases using the funds they have deposited in their bank account, without incurring any revolving finance charges for credit. Unlike a credit card, which allows users to borrow money and pay it back later, a debit card deducts the purchase amount directly from the user's bank account. This means that the user is using their own money, rather than borrowing from the bank, and therefore does not have to pay any interest or finance charges.

The Fair Debt Collection Practices Act is the correct answer because it is the act specifically designed to regulate and address the collection practices of third-party debt collectors. This act establishes guidelines and restrictions on how debt collectors can communicate with debtors, what information they can disclose, and how they can pursue debt collection. It aims to protect consumers from abusive, deceptive, and unfair practices in debt collection. The other options listed are acts that address different aspects of consumer credit and protection, but they do not specifically target third-party debt collectors.

A tickler file is a system used to track pending or resubmitted insurance claims. It is a file or set of files that contains reminders or prompts for future actions or follow-ups. In the context of insurance claims, a tickler file would be used to keep track of claims that are still pending or need to be resubmitted. This helps ensure that these claims are not forgotten or overlooked and allows for timely follow-up and resolution. A tickler file is a useful tool for organizing and managing tasks and deadlines in various industries, including insurance.

The correct method to send documents for a Medicare reconsideration (Level 2) is by certified mail with return receipt requested. This method ensures that the sender has proof of mailing and delivery, as the recipient must sign for the mail and the sender receives a receipt as evidence. This is important for important and time-sensitive documents like Medicare reconsideration requests, as it provides a record of the communication and helps to ensure that the documents are received and processed in a timely manner.

If an insured is in disagreement with the insurer for the settlement of a claim, a suit must begin within 3 years. This means that if the insured and insurer cannot come to an agreement on the claim, the insured must file a lawsuit within 3 years from the date of the disagreement. After this time period, the insured may lose their right to pursue legal action against the insurer. It is important for the insured to be aware of this time limit and take appropriate action within the specified timeframe.

Collection calls should be made during reasonable hours, which typically range from 8 AM to 9 PM. This allows for a reasonable window of time to contact individuals without disturbing them too early in the morning or too late at night. Therefore, the correct answer is "after 8 AM and before 9 PM".

The correct answer is small claims court. Small claims court is a part of the legal system that allows individuals to resolve legal disputes without the need for an attorney. It is designed to handle cases involving small amounts of money, typically under a certain threshold. In small claims court, the procedures are simplified and the rules of evidence are often more relaxed, making it easier for laypeople to navigate the legal process on their own. This allows individuals to represent themselves and present their case to a judge in a more informal setting.

The correct answer is "presented at the time of service". This means that the first statement should be given or shown to the relevant party at the moment the service is being provided. It suggests that the statement is not meant to be sent or mailed after the service has been completed, but rather should be presented in person during the service itself.

The Health Maintenance Act of 1973 made a significant contribution to the development of Health Maintenance Organizations (HMOs). This act provided federal funding and support for the establishment of HMOs as a way to control healthcare costs and improve access to comprehensive healthcare services. It introduced regulations and standards for HMOs, including requirements for preventive care and patient rights. The act also encouraged the integration of healthcare services and emphasized the importance of primary care. Overall, the Health Maintenance Act of 1973 played a crucial role in promoting the growth and success of HMOs in the United States.

Professional courtesy means making no charge to anyone, patient or insurance company, for medical care. This term refers to a situation where a healthcare provider offers their services without expecting any payment in return. It is often extended to other healthcare professionals or their family members as a professional courtesy. This practice is based on the idea of mutual respect and support within the healthcare community. By providing medical care without charge, professionals demonstrate their commitment to the well-being of their colleagues and the overall healthcare system.

Accounts receivable are usually aged in time periods of 30, 60, 90, and 120 days. This means that the company categorizes its outstanding invoices based on how long they have been outstanding. By aging the accounts receivable, the company can track the aging of its receivables and identify any potential issues with collecting payment from customers. The aging process helps the company prioritize its collection efforts and take appropriate actions to ensure timely payment.

When insurance carriers do not pay claims in a timely manner, it has a negative effect on the medical practice's cash flow. This means that the practice will have less money coming in, which can lead to financial difficulties. It may result in delays in paying suppliers and employees, difficulty in purchasing necessary equipment or supplies, and overall financial instability. This can also impact the ability of the practice to provide quality care to patients and meet their needs effectively.

The correct answer is the Equal Credit Opportunity Act. This federal act prohibits discrimination in all areas of granting credit, ensuring that all individuals have equal access to credit regardless of their race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. This act promotes fairness and equal opportunities in the credit industry.

In a bankruptcy case, most medical bills are considered nonsecured debt. This means that they are not backed by any collateral or assets and are therefore not prioritized for repayment. Nonsecured debt is typically discharged or eliminated in bankruptcy, allowing individuals to alleviate the burden of medical bills and start fresh financially.

Capitation refers to a payment model in which an HMO (Health Maintenance Organization) receives a fixed amount of money for each patient they serve, regardless of the actual number or type of services provided to each individual. This means that the HMO assumes the financial risk for the healthcare costs of their patients, as they are responsible for providing all necessary services within the fixed payment received. Capitation is a common payment method used in managed care systems to incentivize healthcare providers to deliver cost-effective care and manage the health of their patient population efficiently.

TRICARE appeals are typically resolved within 60 days. This means that once an appeal is filed, it generally takes up to 60 days for a decision to be made and communicated to the individual. This timeframe allows for a thorough review of the appeal and ensures that a fair and accurate decision is reached. It also provides the necessary time for any additional information or documentation to be gathered and considered before reaching a resolution.

Cash flow refers to the ongoing availability of cash in the medical practice. It represents the movement of money into and out of the practice, including revenue from patients, insurance payments, and other sources, as well as expenses such as salaries, rent, and supplies. It is important for the practice to have a positive cash flow to ensure smooth operations, pay bills on time, and have funds available for investments or emergencies. Monitoring and managing cash flow is crucial for financial stability and success in the medical practice.

Flex time refers to a work arrangement where employees have the flexibility to choose their own working hours within a range of hours approved by management. This allows employees to have a better work-life balance and accommodate personal commitments. It also promotes productivity and employee satisfaction as they can work during their most productive hours. This arrangement is beneficial for both employees and employers as it fosters a more flexible and accommodating work environment.

A preferred provider organization (PPO) is an organization that allows members to have the freedom to choose among physicians and hospitals for their healthcare needs. However, if the members use providers listed on the plan, they will receive a higher level of benefits. This means that members have the flexibility to go out of network and see healthcare providers of their choice, but they can also choose to stay in network and receive additional benefits. This model promotes choice and flexibility for members while still providing incentives for using network providers.

Part B of Medicare covers diagnostic tests. This means that Medicare Part B provides coverage for various medical tests that help diagnose or monitor a patient's condition. These tests can include laboratory tests, X-rays, MRIs, CT scans, and other diagnostic procedures. By covering these tests, Medicare Part B ensures that beneficiaries have access to necessary diagnostic services to help identify and treat their medical conditions.

Medigap insurance is a supplementary insurance policy that helps cover the gaps in Medicare coverage. It is designed to pay for expenses that are not covered by Medicare, such as deductibles, copayments, and coinsurance. Therefore, the correct answer, "the deductible not covered under Medicare," aligns with the purpose of Medigap insurance to provide coverage for expenses that Medicare does not cover.

If an insurance claim has an invalid procedure code, it would be rejected. This means that the claim will not be accepted or approved for payment by the insurance company. The invalid procedure code indicates that the medical service or treatment being claimed is not covered or recognized by the insurance policy. As a result, the claim is denied and the policyholder will not receive any reimbursement or coverage for that particular procedure.

A request for a Medicare administrative law judge hearing can be made if the amount in controversy is at least $100. This means that if the disputed amount between the Medicare beneficiary and the Medicare program is equal to or greater than $100, the beneficiary has the right to request a hearing before an administrative law judge. This allows the beneficiary to present their case and have a fair review of the decision made by the Medicare program.

The best approach to determine where to begin making collection telephone calls to a group of accounts is to organize the accounts according to amounts owed and start with the largest amount. This ensures that the accounts with the highest outstanding balances are prioritized, as they are likely to have a higher urgency for collection. This method maximizes the potential for successful collections and helps to efficiently allocate resources.

An HMO receives payment for the services its physicians provide through a prepaid health plan. This means that members of the HMO pay a fixed amount upfront, either monthly or annually, to access a range of healthcare services. The HMO then uses this prepaid amount to cover the cost of the services provided by its physicians. This payment model allows for a predetermined budget and encourages preventive care and cost-effective treatments within the HMO network.

The letter "D" following the identification number on the patient's Medicare card indicates that the patient is a widow. This suggests that the individual is receiving Medicare benefits as a result of their deceased spouse's work history. The "D" designation helps to identify the specific eligibility category for the patient and ensures that they are receiving the appropriate coverage and benefits.

Referral of a patient recommended by one specialist to another specialist is known as tertiary care. Tertiary care is the highest level of healthcare that involves specialized and advanced medical procedures and treatments. It is typically provided in specialized hospitals or medical centers by healthcare professionals who have expertise in a specific field. This level of care is usually sought when a patient's condition requires a higher level of expertise or specialized interventions that cannot be provided by primary or secondary care providers.

Part A of Medicare covers hospice care, which is a type of care provided to terminally ill patients who have a life expectancy of six months or less. Hospice care focuses on providing comfort and support rather than curative treatment. It includes medical services, pain management, counseling, and assistance with daily activities. This type of care is typically provided in the patient's home, but it can also be offered in a hospice facility or hospital. Hospice care aims to improve the quality of life for patients and their families during the end-of-life stage.