question

Accounts Receivable (A/R)

answer

The total amount of money owed for professional services rendered.

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Age Analysis

answer

The procedure of systematically arranging the accounts receivable, by age, from the date of service.

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AMA Code of Medical Ethics

answer

A code of medical ethics formulated by the American Medical Association and adopted in 1847.

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Automatic stay

answer

A court order that goes into effect once a bankruptcy petition is filed; all other legal actions such as attachments and foreclosures, are halted.

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balance

answer

An amount owed on a credit transaction; also known as the outstanding or unpaid balance.

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bankruptcy

answer

A condition under which a person or corporation is declared unable to pay debts.

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bonding

answer

An insurance contract by which, in return for a stated fee, a bonding agency guarantees payment of a certain sum to an employer in the event of a financial loss to the employer by the act of a specified employee or by some contingency over which the employer has no control.

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cash flow

answer

In a medical practice, the amount of actual cash generated and available for use by the medical practice within a given period of time.

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Code of Medical Ethics

answer

A code of medical ethics written by Thomas A Percival in 1803.

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collateral

answer

Any possession such as an automobile, furniture, stocks, or bonds that secures or guarantees the discharge of an obligation.

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collection ratio

answer

The relationship between the amount of money owed and the amount of money collected in reference to the doctor's accounts receivable.

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credit

answer

(A) From the Latin credere, meaning "to believe" or "to trust"; trust in regard to financial obligation. (B) Accounting entry reflecting payment by a debtor (patient) of a sum received on his or her account.

question

credit card

answer

A card issued by an organization and devised for the purpose of obtaining money, property, labor, or services on credit.

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creditor

answer

A person to whom money is owed.

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cycle billing

answer

A system of billing accounts at spaced intervals during the month based on breakdown of accounts by alphabet, account number, insurance type, or date of first service.

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debit card

answer

A card permitting bank customers to withdraw from any affiliated automated teller machine (ATM) and make cashless purchases from funds on deposit without incurring revolving finance charges for credit.

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Debt

answer

A legal obligation to pay money.

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Debtor

answer

A person owing money.

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discount

answer

A reduction of a normal charge based on a specific amount of money or a percentage of the charge.

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Dun Message

answer

A message or phrase to inform or remind a patient about a delinquent account.

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Embezzlement

answer

A willful act by an employee of taking possession of an employer's money.

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Estate administrator

answer

One who takes possession of the assets of a decedent, pays the expense of administration and the claims of creditors, and disposes of the balance of an estate in accordance with the statutes governing the distribution of decedents' estates.

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Estate executor

answer

One who takes possession of the assets of a decedent, pays the expenses of administration and the claims of creditors, and disposes of the balance of an estate in accordance with the decedent's will.

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Fee schedule

answer

A list of charges or established allowances for specific medical services and procedures.

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Financial accounting record

answer

An individual record indication charges, payments, adjustments, and balances owed for services rendered; also known as a ledger.

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Garnishment

answer

A court order attaching a debtor's property or wages to pay off a debt.

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Insurance Balance Billing

answer

A statement sent to the patient after his or her insurance company has paid its portion of the claim.

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Itemized Statement

answer

A detailed summary of all transactions of a patient's account: dates of service, detailed charges, payments (copayments and deductibles), date the insurance claim was submitted, adjustments, and account balance.

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Lein

answer

A claim on the property of another as a security for a debt. In litigation cases, it is a legal promise to satisfy a debt owed by the patient to the physician out of any proceeds received on the case.

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Manual billing

answer

Processing statements by hand may involve typing statements or photocopying the patient's financial accounting record and placing it in a window envelope, which then becomes the statement.

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Netback

answer

Evaluating a collection agency's performance by taking the amount of monies collected and subtracting the agency's fees.

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No Charge (NC)

answer

Waiving the entire fee owed for professional care.

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Nonexempt assets

answer

One's total property (in bankruptcy cases) not falling in the exemption category; including money, automobile equity, and property,, more than a specified amount, depending on the state in which the person lives.

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Professional courtesy

answer

A discount or exemption from charges given to certain people at the discretion of the physician rendering the services. It is rarely used in current medicine.

question

Reimbursement

answer

Repayment; the term used when insurance payment is pending.

question

secured debt

answer

A debt (an amount owed) in which a debtor pledges certain property (collateral), in a written security agreement, to the repayment of the debt.

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Skip

answer

A debtor who has moved and neglected to give a forwarding address (e.g., skipped town).

question

Statue of Limitations

answer

A time limit established for filing lawsuits; may vary from state to state.

question

Unsecured debt

answer

Any debt (amount owed) that is not secured or backed by any form of collateral.

question

Write-off

answer

Assets or debts that have been determined to be uncollectable and are therefore adjusted off the accounting books as a loss.

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A/R

answer

accounts receivable

question

ATM

answer

automatic teller machine

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CMS

answer

Centers for Medicare and Medicaid Services

question

e-check

answer

electronic check

question

ERISA

answer

Employment Retirement Income Security Act

question

FACT

answer

Fair and Accurate Credit Transactions Act

question

FCBA

answer

Far Credit Billing Act

question

FCRA

answer

Fair Credit Reporting Act

question

FDCPA

answer

Fair Debt Collection Practices Act

question

FEHBA

answer

Federal Employee Health Benefit Act

question

FTC

answer

Federal Trade Commission

question

HMO

answer

health maintenance organization

question

N/A

answer

not applicable

question

NC

answer

no charge

question

NSF

answer

nonsufficient funds

question

TILA

answer

Truth In Lending Act

question

W2

answer

wage and tax statement

question

Third-party payers are composed of _____.

answer

private insurance, government plans, managed care contracts, workers' compensation

question

The unpaid balance due from patients for professional services rendered is known as a/an ____.

answer

accounts receivable

question

An important document that provides demographic and identifying data for each patient and assists in billing and collection is called a/an____.

answer

patient registration form or patient information sheet

question

A term preferable to "write-off" when used in a medical practice is _____.

answer

courtesy adjustment

question

To verify a check, ask the patient for a/an __.

answer

driver's license and one other form of identification

question

The procedure of systematically arranging the accounts receivable, by age, from the date of service is called ___.

answer

age analysis

question

Write the formula for calculating the office accounts receivable (A/R) ratio.

answer

Divide the month-end accounts receivable balance by the monthly average of the medical practice charge for the prior 12-month period.

question

What is the collection rate if a total of $40,300 was collected for the month and the total of the accounts receivable is $50,670?

answer

80%

question

Are physicians' patient accounts single-entry accounts, open book accounts, or written contract accounts?

answer

open book accounts

question

A court order attaching a debtor's property or wages to pay off a debt is known as ___.

answer

garnishment

question

Translate these credit and collection abbreviations. NSF, T, WCO, KS, PIF, FN, NLE, UE

answer

NSF-not sufficient funds T-telephoned WCO-will call office SK-skip or skipped PIF-payment in full FN-final notice NLE-no longer employed UE-unemployed

question

A straight petition in bankruptcy or absolute bankruptcy is also known as a/an ___.

answer

Chapter 7

question

A wage earner's bankruptcy is sometimes referred to as a/an___.

answer

Chapter 13

question

State three bonding methods.

answer

position-schedule bond blanket-position bond personal bond

question

Fair Credit Billing Act

answer

Law stating that a person has 60 days to complain about an error from the date that a statement is mailed.

question

Truth in Lending Act

answer

Consumer protection act that applies to anyone who charges interest or agrees on payment of a bill in more than four installments, excluding a down payment.

question

Fair Debt

answer

Regulates collection practices of third-party debt collectors and attorneys who collect debts for others.

question

Equal Credit Opportunity Act

answer

Federal law prohibiting discrimination in all areas of granting credit.

question

Fair Debt.

answer

Regulates agencies that issue or use credit reports on consumers Collections Practices Act.

question

Signing another person's name on a check to obtain money or pay off debt without permission is called __.

answer

forgery

question

When sending monthly statements to patients for balances due, the postal services can forward mail if the addressed envelopes contain a statement ___.

answer

"Forwarding Service Requested"

question

When accepting a credit card as payment on an account, the proper guideline(s) to follow is/are to:

answer

Ask for photo Identification., Accept a card only form the person shoes name is on the card,. Get approval from the credit card company.

question

A service offered by a nonprofit agency assisting people in paying off their debts is known as ___.

answer

credit counseling

question

Insurance payment checks should be stamped in the endorsement area on the back "For Deposit Only," which is called a/an ___.

answer

restrictive endorsement

question

T/F Insurance companies and the federal government do not recommend waiving copayments to patients.

answer

True

question

T/F Regulation Z of the Truth in Lending Consumer Credit Cost Disclosure law applies if the patient is making three payments.

answer

False

question

T/F Most state collection laws allow telephone call to the debtor between 8 AM and 9 PM.

answer

True

question

T/F When patient has declared bankruptcy, it is permissible to continue to send monthly statements for a balance due.

answer

False

question

T/F A collection agency must follow all the laws stated in the Fair Debt Collection Practices Act.

answer

True

question

T/F The physician, the practice administrator responsible for financial affairs, and the patient must understand insurance contracts, which list payment provisions, medical services not covered, the portion of the bill the patient is responsible for, and the process for reimbursing the office.

answer

True

question

T/F The insurance billing specialist must monitor the accounts receivable (A/R) weekly to find out the effectiveness of collection. An average A/R should be one and a half to two times the charges for 1 month of services.

answer

True

question

T/F Collect copayments and deductibles from patients at the time service is rendered.

answer

True

question

T/F Under HIPAA, physicians are free to use whatever policies they want on charity care, discounts, write-offs, and collections, but this must be done consistently and the reasons must be documented. Professional courtesy should be kept to a minimum.

answer

True

question

T/F When payments are made by check, require two, forms of verification. Always take immediate action when the bank returns a check for nonsufficient funds.

answer

True

question

T/F Recognize overdue accounts to determine when to send messages on statements, make telephone calls, or send to a collection agency.

answer

True

question

T/F Use alternative payment methods to help cash flow and reduce collection costs such as credit card payments, debit cards, e-checks, and payment plans.

answer

True

question

T/F Follow all federal and state laws that affect collection of delinquent accounts.

answer

True

question

T/F Contact the patient in a timely manner by telephone at the first sign of payment delay and then send a collection letter as a reminder.

answer

True

question

T/F Delinquent accounts should be turned over to a collection agency only after all reasonable attempts have been made to collect.

answer

True

question

T/F It is in the physician's best interest to resolve patient complaints and billing disputes quickly, accurately, and amicably.

answer

True

question

Messages included on statements to promote payment are called?

answer

dun messages

question

What is a card called that permits bank customers to make cashless purchases from funds on deposit without incurring revolving finance charges for credit?

answer

Debit card

question

When insurance carriers do not pay claims in a timely manner, what effect does this have on the medical practice?

answer

Decreased cash flow

question

T/F Insurance billing specialists who handle checks or cash should be bonded and insured.

answer

True

IHMO Ch. 10 – Flashcards

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