insurnace chapter 10 multiple choice – Flashcards
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cash flow is
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the amount of money available in the cash drawer.
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when insurance carriers do not pay claims in a timely manner, what effect does this have on the medical practice?
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decreased cash flow
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what does the insurance billing specialist need to monitor to be able to evaluate the effectiveness of the collection process?
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accounts receivable
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the average amount of accounts receivable should be
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105 to 2 times the charges for 1 month of services.
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accounts that are 90 days or older should not exceed
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15% to 18% of the total accounts receivable
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what should be done to inform a new patient of office fees and payment policies?
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all of the above
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the patient is likely to be the most cooperative in furnishing details necessary for a complete registration process.
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before any services are any services are provided
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the reason for a fee reduction must be documents in the patients
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medical record
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professional courtesy means
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making no charge to anyone, patient or insurance company, for medical care.
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when collecting fees, your goal should always be to
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collect the full amount
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a medical practice has a policy of billing only for charges in excess of 50.
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state the office policy and ask for the full fee
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the most common method of payment in the medical office is
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personal check
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when the physicians office receives notice that a check was not honored, the first thing to do is to
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call the bank or the patient
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accounts receivable are usually aged in time periods of
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30, 60,90, and 120 days
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messages included on statements to promote payment are called
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dun messages
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what is the type of billing system in which practice management software is used?
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computer billing
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employment of a billing service is called
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outsourcing
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the first statement should be
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presented at the time of service
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the first telephone call to the patient to try to collect on an account should be made
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after there is no response from the third statement.
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what is a card called that permits bank customers to make cashless purchases from funds on deposit with out incurring revolving finance charges for credit?
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debit card
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how many installments (excluding a down payment) must a payment plan have to require fill written disclosure?
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four or more
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patient accounts that are 90 days or older should not exceed what percent of the total office accounts receivable?
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15% to 18%
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what is the name of the federal act that prohibits discrimination in all areas of granting credit?
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truth in lending act
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what is the name of the act designed to address the collection practices of third-party debt collectors and attorney's who regularly collect debts for others?
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fair debt collection practices act
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all collection calls should be placed
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after 8 AM and before 9 PM
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which group of account would a collector target when he or she begins making telephone calls?
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60- to 90 day accounts
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in making collection telephone calls to a group of accounts, how should accounts be organized to determine where to begin?
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organize the accounts according to amounts owed and start with the largest amount.
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a plan in which employees can choose their own working hours from within a broad range of hours approved by management is called
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flex time
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when writing a collection letter
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use a friendly tone and ask why payment has not been made
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if an insurance company seems to be ignoring all efforts to trace a claim, send a copy of the
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history of the account
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"netback" is a term used to describe
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a collection agency's performance
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the part of the legal system that allows laypeople to settle a legal matter without use of an attorney is the
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small claims court
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in a bankruptcy case, most medical bills are considered
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unsecured debt
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which type of bankruptcy is considered "wage earner's bankruptcy"?
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chapter 13
