Medical Billing and Reimbursement – Flashcards

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question
The case-mix management system that utilizes information from the Minimum Data Set (MDS) in long-term care settings is called a. Resource Utilization Groups (RUGs). b. Ambulatory Patient Classifications (APCs). c. Medicare Severity Diagnosis Related Groups (MS-DRGs). d. Resource Based Relative Value System (RBRVS).
answer
a. Resource Utilization Groups (RUGs).
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The prospective payment system used to reimburse home health agencies for patients with Medicare utilizes data from a. UHDDS (Uniform Hospital Discharge Data Set). b. UACDS (Uniform Ambulatory Core Data Set). c. MDS (Minimum Data Set). d. OASIS (Outcome and Assessment Information Set).
answer
d. OASIS (Outcome and Assessment Information Set). REFERENCE: Green, p 423
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3. ________ indicates that the claim is suspended in the billing system awaiting late charges, diagnoses/procedure codes that are soft coded by the coders, and/or insurance verification. a. Bill drop b. Concurrent review c. Bill hold d. Accounts receivables
answer
c. Bill hold
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All of the following items are "packaged" under the Medicare outpatient prospective payment system, EXCEPT for a. anesthesia. b. medical visits. c. recovery room. d. medical supplies.
answer
b. medical visits.
question
Under the RBRVS, each HCPCS/CPT code contains three components, each having assigned relative value units. These three components are a. conversion factor, CMS weight, and hospital-specific rate. b. physician work, practice expense, and malpractice insurance expense. c. geographic index, wage index, and cost of living index. d. fee-for-service, per diem payment, and capitation.
answer
b. physician work, practice expense, and malpractice insurance expense. REFERENCE: Green, p 1011
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The prospective payment system used to reimburse hospitals for Medicare hospital outpatients is called a. MS-DRGs. b. APCs. c. APGs. d. RBRVS
answer
b. APCs.
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A Medicare patient was seen by Dr. Zachary, who is a nonparticipating physician. The charge for the office visit was $125. The Medicare beneficiary had already met his deductible. The Medicare Fee Schedule amount is $100. Dr. Zachary does not accept assignment. The office manager will apply a practice termed as "balance billing," which means that the patient is a. financially liable for only the deductible. b. not financially liable for any amount. c. financially liable for the Medicare fee schedule amount. d. financially liable for charges in excess of the Medicare fee schedule, up to a limit.
answer
d. financially liable for charges in excess of the Medicare fee schedule, up to a limit. Sayles, pp 295-297
question
The prospective payment system based on resource utilization groups (RUGs) is used for reimbursement to ____________for patients with Medicare. a. skilled nursing facilities b. intermediate care facilities c. freestanding ambulatory surgery centers d. hospital-based outpatients
answer
a. skilled nursing facilities REFERENCE: Green, pp 1006-1007
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The ________ is a statement sent to the provider to explain payments made by third-party payers. a. acknowledgment notice b. attestation statement c. remittance advice d. advance beneficiary notice
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c. remittance advice
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How many major diagnostic categories are there in the MS-DRG system? a. 25 b. 80 c. 100 d. 2,000
answer
a. 25
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The computer-to-computer transfer of data between providers and third-party payers in a data format agreed upon by both parties is called a. health data exchange (HDE). b. health information exchange (HIE). c. HIPPA (Health Insurance Portability and Accountability Act). d. electronic data interchange (EDI).
answer
d. electronic data interchange (EDI).
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A computer software program that assigns appropriate MS-DRGs according to the information provided for each episode of care is called a(n) a. scrubber. b. grouper. c. encoder. d. case-mix analyzer.
answer
b. grouper.
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The standard claim form used by hospitals to request reimbursement for inpatient and outpatient procedures performed or services provided is called the a. CMS-1600. b. CMS-1491. c. UB-04. d. CMS-1500.
answer
c. UB-04. The UB-04 is used by hospitals. The CMS-1500 is used by physicians and other noninstitutional providers and suppliers. The CMS-1491 is used by ambulance services.
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Under ASCs, when multiple procedures are performed during the same surgical session, a payment reduction is applied. The procedure in the highest level group is reimbursed at ________ and all remaining procedures are reimbursed at ________. a. 100%, 75% b. 100%, 25% c. 50%, 25% d. 100%, 50%
answer
d. 100%, 50%
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The ________ refers to a statement sent to the patient to show how much the provider billed, how much Medicare reimbursed the provider, and what the patient must pay the provider. a. coordination of benefits b. advance beneficiary notice c. Medicare summary notice d. remittance advice
answer
c. Medicare summary notice
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Currently, which prospective payment system is used to determine the payment to the physician for outpatient surgery performed on a Medicare patient? a. ASCs b. RBRVS c. MS-DRGs d. APCs
answer
d. APCs
question
Which of the following best describes the situation of a provider who agrees to accept assignment for Medicare Part B services? a. The provider is a nonparticipating provider. b. The provider cannot bill the patients for the balance between the MPFS amount and the total charges. c. The provider is reimbursed at 15% above the allowed charge. d. The provider is paid according to the Medicare Physician Fee Schedule (MPFS) plus 10%.
answer
b.The provider cannot bill the patients for the balance between the MPFS amount and the total charges. Since the provider accepts assignment, he will accept the Medicare Physician Fee Schedule (MPFS) payment as payment in full.
question
When the MS-DRG payment received by the hospital is lower than the actual charges for providing the inpatient services for a patient with Medicare, then the hospital a. can bill Medicare for the difference. b. absorbs the loss. c. makes a profit. d. can bill the patient for the difference.
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b. absorbs the loss.
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Under ASCs, bilateral procedures are reimbursed at ________ of the payment rate for their group. a. 150% b. 200% c. 50% d. 100%
answer
a. 150%
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Use the following table to answer the question. MS-DRG Description Number of Patients CMS Relative Weight 470 Major joint replacement or reattachment of lower extremity w/o MCC 2,750 1.9871 392 Esophagitis, gastroent & misc. digestive disorders w/o MCC 2,200 0.7121 194 Simple pneumonia & pleurisy w CC 1,150 1.0235 247 Perc cardiovasc proc 2 drug-eluting stent w/o MCC 900 2.1255 293 Heart failure & shock w/o CC/MCC 850 0.8765 313 Chest pain 650 0.5489 292 Heart failure & shock w CC 550 1.0134 690 Kidney & urinary tract infections w/o MCC 400 0.8000 192 Chronic obstructive pulmonary disease w/o CC/MCC 300 0.8145 871 Septicemia w/o MV 96+ hours w MCC 250 1.7484 The case-mix index (CMI) for the top 10 MS-DRGs above is a. 1.097. b. 0.782. c. 1.164. d. 1.278
answer
d. 1.278 12781.730/10,000 = 1.278
question
Use the following table to answer the question. MS-DRG Description Number of Patients CMS Relative Weight 470 Major joint replacement or reattachment of lower extremity w/o MCC 2,750 1.9871 392 Esophagitis, gastroent & misc. digestive disorders w/o MCC 2,200 0.7121 194 Simple pneumonia & pleurisy w CC 1,150 1.0235 247 Perc cardiovasc proc 2 drug-eluting stent w/o MCC 900 2.1255 293 Heart failure & shock w/o CC/MCC 850 0.8765 313 Chest pain 650 0.5489 292 Heart failure & shock w CC 550 1.0134 690 Kidney & urinary tract infections w/o MCC 400 0.8000 192 Chronic obstructive pulmonary disease w/o CC/MCC 300 0.8145 871 Septicemia w/o MV 96+ hours w MCC 250 1.7484 Which individual MS-DRGs has the highest reimbursement? a. 293 b. 871 c. 247 d. 470
answer
c. 247 Sayles, p 269
question
Use the following table to answer the question. MS-DRG Description Number of Patients CMS Relative Weight 470 Major joint replacement or reattachment of lower extremity w/o MCC 2,750 1.9871 392 Esophagitis, gastroent & misc. digestive disorders w/o MCC 2,200 0.7121 194 Simple pneumonia & pleurisy w CC 1,150 1.0235 247 Perc cardiovasc proc 2 drug-eluting stent w/o MCC 900 2.1255 293 Heart failure & shock w/o CC/MCC 850 0.8765 313 Chest pain 650 0.5489 292 Heart failure & shock w CC 550 1.0134 690 Kidney & urinary tract infections w/o MCC 400 0.8000 192 Chronic obstructive pulmonary disease w/o CC/MCC 300 0.8145 871 Septicemia w/o MV 96+ hours w MCC 250 1.7484 Based on this patient volume, during this time period, the MS-DRG that brings in the highest "total" reimbursement to the hospital is a. 871. b. 392. c. 470. d. 247.
answer
c. 470. Sayles, p 296
question
Use the following table to answer the question. MS-DRG Description Number of Patients CMS Relative Weight 470 Major joint replacement or reattachment of lower extremity w/o MCC 2,750 1.9871 392 Esophagitis, gastroent & misc. digestive disorders w/o MCC 2,200 0.7121 194 Simple pneumonia & pleurisy w CC 1,150 1.0235 247 Perc cardiovasc proc 2 drug-eluting stent w/o MCC 900 2.1255 293 Heart failure & shock w/o CC/MCC 850 0.8765 313 Chest pain 650 0.5489 292 Heart failure & shock w CC 550 1.0134 690 Kidney & urinary tract infections w/o MCC 400 0.8000 192 Chronic obstructive pulmonary disease w/o CC/MCC 300 0.8145 871 Septicemia w/o MV 96+ hours w MCC 250 1.7484 Based on this patient volume, the MS-DRG that brings in the highest total profit to the hospital is a. It cannot be determined from this information. b. 392. c. 470. d. 247
answer
a. It cannot be determined from this information. Total profit cannot be determined from this information alone. A comparison of the total charges on the bills and the PPS amount (reimbursement amount) that the hospital would receive for each MS-DRG could identify the total profit.
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The Health Insurance Portability and Accountability Act (HIPAA) requires the retention of health insurance claims and accounting records for a minimum of ________ years, unless state law specifies a longer period. a. ten b. seven c. six d. five
answer
c. six
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________ is an act that represents a crime against payers or other health care programs (e.g., Medicare), or attempts or conspiracies to commit those crimes. a. Assault b. Abuse c. Fraud d. Whistle-blowing
answer
c. Fraud
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These are assigned to every HCPCS/CPT code under the Medicare hospital outpatient prospective payment system to identify how the service or procedure described by the code would be paid. a. payment status indicator b. minimum data set c. geographic practice cost indices d. major diagnostic categories
answer
a. payment status indicator
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The term used to indicate that the service or procedure is reasonable and necessary for the diagnosis or treatment of illness or injury consistent with generally accepted standards of care is a. medical necessity. b. benchmarking. c. appropriateness. d. evidence-based medicine.
answer
a. medical necessity.
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This law prohibits a physician from referring Medicare patients to clinical laboratory services where the doctor or a member of their family has a financial interest. a. the Stark I Law b. the Federal Antikickback Statute c. the False Claims Act d. the Civil Monetary Penalties Act
answer
a. the Stark I Law
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________ are errors in medical care that are clearly identifiable, preventable, and serious in their consequences for patients. a. Potential compensable events b. Never events and Sentinel events d. Adverse preventable events
answer
b. Never events and Sentinel events
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When a provider, in order to increase their reimbursement, reports codes to a payer that are not supported by documentation in the medical record, this is called a. hypercoding. b. unbundling. c. fraud. d. abuse.
answer
d. abuse.
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What prospective payment system reimburses the provider according to prospectively determined rates for a 60-day episode of care? a. the skilled nursing facility prospective payment system b. long-term care Medicare severity diagnosis-related groups c. home health resource groups d. inpatient rehabilitation facility
answer
c. home health resource groups
question
If the Medicare nonPAR approved payment amount is $128.00 for a proctoscopy, what is the total Medicare approved payment amount for a doctor who does not accept assignment, applying the limiting charge for this procedure? a. $147.20 b. $192.00 c. $140.80 d. $143.00
answer
a. $147.20 The limiting charge is 15% above Medicare's approved payment amount for doctors who do NOT accept assignment ($128.00 X 1.15 = $147.20).
question
Under the inpatient prospective payment system (IPPS), there is a 3-day payment window (formerly referred to as the 72-hour rule). This rule requires that outpatient preadmission services that are provided by a hospital up to three calendar days prior to a patient's inpatient admission be covered by the IPPS MS-DRG payment for a. both diagnostic services and therapeutic (or nondiagnostic) services whereby the inpatient principal diagnosis code (ICD-9-CM) exactly matches the code used for preadmission services. b. therapeutic (or nondiagnostic) services whereby the inpatient principal diagnosis code (ICD-9-CM) does not match the code used for preadmission services. c. diagnostic services. d. therapeutic (or nondiagnostic) services whereby the inpatient principal diagnosis code (ICD-9-CM) exactly matches the code used for preadmission services.
answer
a. both diagnostic services and therapeutic (or nondiagnostic) services whereby the inpatient principal diagnosis code (ICD-9-CM) exactly matches the code used for preadmission services.
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A new initiative by the government to eliminate fraud and abuse and recover overpayments involves the use of ________ Charts are audited to identify Medicare overpayments and underpayments. These entities are paid based on a percentage of money they identify and collect on behalf of the government. a. Recovery Audit Contractors (RAC) b. Medicare Code Editors (MCE) c. Clinical Data Abstraction Centers (CDAC) d. Quality Improvement Organizations (QIO)
answer
a. Recovery Audit Contractors (RAC)
question
A discharge in which the patient was discharged from the inpatient rehabilitation facility and returned within three calendar days (prior to midnight on the third day) is called a(n) a. qualified discharge. b. per diem. c. interrupted stay. d. transfer.
answer
c. interrupted stay.
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In a global payment methodology, which is sometimes applied to radiological and similar types of procedures that involve professional and technical components, all of the following are part of the "technical" components EXCEPT a. support services. b. radiological supplies. c. radiological equipment. d. physician services.
answer
d. physician services.
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Changes in case-mix index (CMI) may be attributed to all of the following factors EXCEPT a. changes in coding productivity. b. changes in services offered. c. changes in medical staff composition. d. changes in coding rules.
answer
a. changes in coding productivity.
question
This prospective payment system replaced the Medicare physician payment system of "customary, prevailing, and reasonable (CPR)" charges whereby physicians were reimbursed according to their historical record of the charge for the provision of each service. a. Capitation b. Global payment c. Medicare Physician Fee Schedule (MPFS) d. Medicare Severity-Diagnosis Related Groups (MS-DRGs)
answer
c. Medicare Physician Fee Schedule (MPFS) The Medicare Physician Fee Schedule (MPFS) reimburses providers according to predetermined rates assigned to services. REFERENCE: Green, p 1011
question
CMS-identified "Hospital-Acquired Conditions" mean that when a particular diagnosis is not "present on admission," CMS determines it to be a. the principal diagnosis. b. a valid comorbidity. c. medically necessary. d. reasonably preventable
answer
d. reasonably preventable
question
This process involves the gathering of charge documents from all departments within the facility that have provided services to patients. The purpose is to make certain that all charges are coded and entered into the billing system. a. revenue cycle b. charge capturing c. precertification d. insurance verification
answer
b. charge capturing
question
The Correct Coding Initiative (CCI) edits contain a listing of codes under two columns titled "comprehensive codes" and "component codes." According to the CCI edits, when a provider bills Medicare for a procedure that appears in both columns for the same beneficiary on the same date of service a. code both the comprehensive code and the component code. b. code only the comprehensive code. c. code only the component code. d. do not code either one.
answer
b. code only the comprehensive code. REFERENCE: Green, p 1024
question
The following type of hospital is considered excluded when it applies for and receives a waiver from CMS. This means that the hospital does not participate in the inpatient prospective payment system (IPPS) a. cancer hospital b. psychiatric hospital c. rehabilitation hospital d. long-term care hospital
answer
a. cancer hospital Cancer hospitals can apply for and receive waivers from the Centers for Medicare and Medicaid Services (CMS) and are therefore excluded from the inpatient prospective payment system (MS-DRGs). Rehabilitation hospitals are reimbursed under the Inpatient Rehabilitation Prospective Payment System (IRF PPS). Long-term care hospitals are reimbursed under the Long-Term Care Hospital Prospective Payment System (LTCH PPS). Skilled nursing facilities are reimbursed under the Skilled Nursing Facility Prospective Payment System (SNF PPS).
question
These are financial protections to ensure that certain types of facilities (e.g., children's hospitals) recoup all of their losses due to the differences in their APC payments and the pre-APC payments. a. pass through b. hold harmless c. limiting charge d. indemnity insurance
answer
b. hold harmless REFERENCE: Green, p 989
question
LCDs and NCDs are review policies that describe the circumstances of coverage for various types of medical treatment. They advise physicians which services Medicare considers reasonable and necessary and may indicate the need for an advance beneficiary notice. They are developed by the Centers for Medicare and Medicaid Services (CMS) and Medicare Administrative Contractors. LCD and NCD are acronyms that stand for a. local contractor's decisions and national contractor's decisions. b. list of covered decisions and noncovered decisions. c. local covered determinations and noncovered determinations. d. local coverage determinations and national coverage determinations.
answer
d. local coverage determinations and national coverage determinations.
question
Charge Code Item Description General Ledger Key Medicare Medicaid Charges Revenue Code Activity Date 49683105 CT scan; head; w/out contrast 3 70450 70450 500.00 0351 1/1/2013 49683106 CT scan; head; with contrast 3 70460 70460 675.00 0351 1/1/2013 This information is printed on the UB-04 claim form to represent the cost center (e.g., lab, radiology, cardiology, respiratory, etc.) for the department in which the item is provided. It is used for Medicare billing. a. general ledger key b. charge code c. HCPCS d. revenue code
answer
d. revenue code
question
Charge Code Item Description General Ledger Key Medicare Medicaid Charges Revenue Code Activity Date 49683105 CT scan; head; w/out contrast 3 70450 70450 500.00 0351 1/1/2013 49683106 CT scan; head; with contrast 3 70460 70460 675.00 0351 1/1/2013 This information is used because it provides a uniform system of identifying procedures, services, or supplies. Multiple columns can be available for various financial classes. a. charge code b. general ledger key c. HCPCS code d. revenue code
answer
c. HCPCS code
question
Charge Code Item Description General Ledger Key Medicare Medicaid Charges Revenue Code Activity Date 49683105 CT scan; head; w/out contrast 3 70450 70450 500.00 0351 1/1/2013 49683106 CT scan; head; with contrast 3 70460 70460 675.00 0351 1/1/2013 This information provides a narrative name of the services provided. This information should be presented in a clear and concise manner. When possible, the narratives from the HCPCS/CPT book should be utilized. a. revenue code b. item description/service description c. general ledger key d. HCPCS
answer
b. item description/service description
question
HCPCS Code Charge Code Item Description General Ledger Key Medicare Medicaid Charges Revenue Code Activity Date 49683105 CT scan; head; w/out contrast 3 70450 70450 500.00 0351 1/1/2013 49683106 CT scan; head; with contrast 3 70460 70460 675.00 0351 1/1/2013 This information is the numerical identification of the service or supply. Each item has a unique number with a prefix that indicates the department number (the number assigned to a specific ancillary department) and an item number (the number assigned by the accounting department or the business office) for a specific procedure or service represented on the chargemaster. a. general ledger key b. revenue code c. charge code/service code d. HCPCS code
answer
c. charge code/service code
question
HCPCS Code Charge Code Item Description General Ledger Key Medicare Medicaid Charges Revenue Code Activity Date 49683105 CT scan; head; w/out contrast 3 70450 70450 500.00 0351 1/1/2013 49683106 CT scan; head; with contrast 3 70460 70460 675.00 0351 1/1/2013 This information is used to assign each item to a particular section of the general ledger in a particular facility's accounting section. Reports can be generated from this information to include statistics related to volume in terms of numbers, dollars, and payer types. a. HCPCS code b. revenue code c. general ledger key d. charge code
answer
c. general ledger key
question
HCPCS Code Charge Code Item Description General Ledger Key Medicare Medicaid Charges Revenue Code Activity Date 49683105 CT scan; head; w/out contrast 3 70450 70450 500.00 0351 1/1/2013 49683106 CT scan; head; with contrast 3 70460 70460 675.00 0351 1/1/2013 Under APCs, the patient is responsible for paying the coinsurance amount based upon ________ of the national median charge for the services rendered. a. 80% b. 20% c. 50% d. 15%
answer
b. 20%
question
________ is a program that pays for medical assistance to individuals and families with low incomes and limited financial resources. a. Medicare Part B b. Medicaid c. Medigap d. Medicare Part A
answer
b. Medicaid
question
The DNFB report includes all patients who have been discharged from the facility but for whom, for one reason or another, the billing process is not complete. a. discharged not final billed b. dollars not fully billed c. diagnosis not finally balanced d. days not fiscally balanced
answer
a. discharged not final billed
question
The limiting charge is a percentage limit on fees specified by legislation that the nonparticipating physician may bill Medicare beneficiaries above the nonPAR fee schedule amount. The limiting charge is a. 50%. b. 20%. c. 10%. d. 15%.
answer
d. 15%.
question
Use the following case scenario to answer the question. A patient with Medicare is seen in the physician's office. The total charge for this office visit is $250.00. The patient has previously paid his deductible under Medicare Part B. The PAR Medicare fee schedule amount for this service is $200.00. The nonPAR Medicare fee schedule amount for this service is $190.00. The patient is financially liable for the coinsurance amount, which is a. 15%. b. 20%. c. 80%. d. 100%
answer
b. 20%. REFERENCE: Green and Rowell, p 498
question
Use the following case scenario to answer the question. A patient with Medicare is seen in the physician's office. The total charge for this office visit is $250.00. The patient has previously paid his deductible under Medicare Part B. The PAR Medicare fee schedule amount for this service is $200.00. The nonPAR Medicare fee schedule amount for this service is $190.00. If this physician is a participating physician who accepts assignment for this claim, the total amount the physician will receive is a. $190.00. b. $218.50. c. $200.00. d. $250.00.
answer
c. $200.00 If a physician is a participating physician who accepts assignment, he will receive the lesser of "the total charges" or "the PAR Medicare Fee Schedule amount." In this case, the Medicare Fee Schedule amount is less; therefore, the total received by the physician is $200.00
question
Use the following case scenario to answer the question. A patient with Medicare is seen in the physician's office. The total charge for this office visit is $250.00. The patient has previously paid his deductible under Medicare Part B. The PAR Medicare fee schedule amount for this service is $200.00. The nonPAR Medicare fee schedule amount for this service is $190.00. If this physician is a nonparticipating physician who does NOT accept assignment for this claim, the total amount the physician will receive is a. $190.00. b. $218.50. c. $250.00. d. $200.00.
answer
b. $218.50 If a physician is a nonparticipating physician who does not accept assignment, he can collect a maximum of 15% (the limiting charge) over the non-PAR Medicare Fee Schedule amount. In this case, the non-PAR Medicare Fee Schedule amount is $190.00 and 15% over this amount is $28.50; therefore, the total that he can collect is $218.50.
question
A patient with Medicare is seen in the physician's office. The total charge for this office visit is $250.00. The patient has previously paid his deductible under Medicare Part B. The PAR Medicare fee schedule amount for this service is $200.00. The nonPAR Medicare fee schedule amount for this service is $190.00. If this physician is a participating physician who accepts assignment for this claim, the total amount of the patient's financial liability (out-of-pocket expense) is a. $30.00. b. $160.00. c. $200.00. d. $40.00.
answer
d. $40.00. The PAR Medicare Fee Schedule amount is $200.00. The patient has already met the deductible. Of the $200.00, the patient is responsible for 20% ($40.00). Medicare will pay 80% ($160.00). Therefore, the total financial liability for the patient is $40.00.
question
A patient with Medicare is seen in the physician's office. The total charge for this office visit is $250.00. The patient has previously paid his deductible under Medicare Part B. The PAR Medicare fee schedule amount for this service is $200.00. The nonPAR Medicare fee schedule amount for this service is $190.00. a. $152.00. b. $190.00. c. $66.50. d. $38.00.
answer
c. $66.50.
question
A fiscal year is a yearly accounting period. It is the 12-month period on which a budget is planned. The federal fiscal year is a. April 1st through March 31 of the next year. b. July 1st through the June 30 of the next year. c. October 1st through September 30 of the next year. d. January 1st through December 31.
answer
c. October 1st through September 30 of the next year.
question
There are times when documentation is incomplete or insufficient to support the diagnoses found in the chart. The most common way of communicating with the physician for answers is by a. leaving notes in the chart. b. calling the physician's office. c. e-mailing physicians. d. using physician query forms.
answer
d. using physician query forms.
question
Under APCs, payment status indicator "X" means a. significant procedure, not discounted when multiple. b. significant procedure, multiple procedure reduction applies. c. ancillary services. d. clinic or emergency department visit (medical visits).
answer
c. ancillary services. Under the APC system, there exists a list of status indicators (also called service indicators, payment status indicators, or payment indicators). This indicator is provided for every HCPCS/CPT code and identifies how the service or procedure would be paid (if covered) by Medicare for hospital outpatient visits.
question
Under APCs, payment status indicator "V" means a. significant procedure, not discounted when multiple. b. inpatient procedure. c. ancillary services. d. clinic or emergency department visit (medical visits).
answer
d. clinic or emergency department visit (medical visits). Under the APC system, there exists a list of status indicators (also called service indicators, payment status indicators, or payment indicators). This indicator is provided for every HCPCS/CPT code and identifies how the service or procedure would be paid (if covered) by Medicare for hospital outpatient visits.
question
Under APCs, payment status indicator "S" means a. significant procedure, multiple procedure reduction does not apply. b. significant procedure, multiple procedure reduction applies. c. ancillary services. d. clinic or emergency department visit (medical visits).
answer
a. significant procedure, multiple procedure reduction does not apply.
question
Under APCs, payment status indicator "T" means a. ancillary services. b. significant procedure, not discounted when multiple. c. significant procedure, multiple procedure reduction applies. d. clinic or emergency department visit (medical visits).
answer
c. significant procedure, multiple procedure reduction applies. Under the APC system, there exists a list of status indicators (also called service indicators, payment status indicators, or payment indicators). This indicator is provided for every HCPCS/CPT code and identifies how the service or procedure would be paid (if covered) by Medicare for hospital outpatient visits. Payment Status Indicator (PSI) "T" means that if a patient has more than one CPT code with this PSI, the procedure with the highest weight will be paid at 100% and all others will be reduced or discounted and paid at 50%.
question
Under APCs, payment status indicator "C" means a. ancillary services. b. significant procedure, not discounted when multiple. c. significant procedure, multiple procedure reduction applies. d. inpatient procedures/services.
answer
d. inpatient procedures/services.
question
This is a 10-digit, intelligence-free, numeric identifier designed to replace all previous provider legacy numbers. This number identifies the physician universally to all payers. This number is issued to all HIPAA-covered entities. It is mandatory on the CMS-1500 and UB-04 claim forms. a. National Practitioner Databank (NPD) b. National Provider Identifier (NPI) c. Master Patient Index (MPI) d. Universal Physician Number (UPN)
answer
b. National Provider Identifier (NPI)
question
In the managed care industry, there are specific reimbursement concepts, such as "capitation." All of the following statements are true in regard to the concept of "capitation," EXCEPT a. each service is paid based on the actual charges. b. capitation involves a group of physicians or an individual physician. c. capitation means paying a fixed amount per member per month. d. the volume of services and their expense do not affect reimbursement.
answer
a. each service is paid based on the actual charges.
question
When billing for the admitting physician for a patient who is admitted to the hospital as an inpatient, one must use a CPT Evaluation and Management code based on the level of care provided. 99221 Initial hospital care, per day, for the evaluation and management of a patient, which requires these three key components: - a detailed or comprehensive history - a detailed or comprehensive examination and - medical decision making that is straightforward or of low complexity 99222 Initial hospital care, per day, for the evaluation and management of a patient, which requires these three key components: - a comprehensive history - a comprehensive examination and - medical decision making of moderate complexity 99223 Initial hospital care, per day, for the evaluation and management of a patient, which requires these three key components: - a comprehensive history - a comprehensive examination and - medical decision making of high complexity a. This code can be used only once per hospitalization. b. This code can be used by the hospital to bill for facility services. c. This code can be used for patients admitted to observation status. d. This code can be used by the admitting physician or consulting physician.
answer
a. This code can be used only once per hospitalization.
question
This document is published by the Office of Inspector General (OIG) every year. It details the OIG's focus for Medicare fraud and abuse for that year. It gives health care providers an indication of general and specific areas that are targeted for review. It can be found on the Internet on CMS'Web site. a. the OIG's Evaluation and Management Documentation Guidelines b. the OIG's Workplan c. the Federal Register d. the OIG's Model Compliance Plan
answer
b. the OIG's Workplan Sayles, p 305
question
Accounts Receivable (A/R) refers to a. cases that have not yet been paid. b. denials that have been returned to the hospital. c. cases that have been paid. d. the amount the hospital was paid.
answer
a. cases that have not yet been paid.
question
The following coding system(s) is/are utilized in the MS-DRG prospective payment methodology for assignment and proper reimbursement. a. ICD-10-CM/ICD-10-PCS codes b. HCPCS/CPT codes c. NPI codes d. both HCPCS/CPT codes and ICD-10-CM/ICD-10-PCS codes
answer
a. ICD-10-CM/ICD-10-PCS codes REFERENCE: Green, pp 1002-1004 Sayles, p 267
question
The following coding system(s) is/are utilized in the Inpatient Psychiatric Facilities (IPFs) prospective payment methodology for assignment and proper reimbursement. a. Revenue codes b. both HCPCS/CPT codes and ICD-10-CM/ICD-10-PCS codes c. both HCPCS/CPT codes and ICD-9-CM codes d. ICD-10-CM/ICD-10-PCS codes
answer
d. ICD-10-CM/ICD-10-PCS codes
question
An Advance Beneficiary Notice (ABN) is a document signed by the a. utilization review coordinator indicating that the patient stay is not medically necessary. b. provider indicating that Medicare will not pay for certain services. c. patient indicating whether he/she wants to receive services that Medicare probably will not pay for. d. physician advisor indicating that the patient's stay is denied.
answer
c. patient indicating whether he/she wants to receive services that Medicare probably will not pay for
question
CMS identified Hospital-Acquired Conditions (HACs). Some of these HACs include foreign objects retained after surgery, blood incompatibility, and catheter-associated urinary tract infection. The importance of the HAC payment provision is that the hospital a. will receive additional payment for these conditions when they are not present on admission. b. will not receive additional payment for these conditions when they are present on admission. c. will receive additional payment for these conditions whether they are present on admission or not. d. will not receive additional payment for these conditions when they are not present on admission.
answer
d. will not receive additional payment for these conditions when they are not present on admission.
question
Under Medicare Part B, all of the following statements are true and are applicable to nonparticipating physician providers, EXCEPT a. providers must file all Medicare claims. b. collections are restricted to only the deductible and coinsurance due at the time of service on an assigned claim. c. fees are restricted to charging no more than the "limiting charge" on nonassigned claims. d. nonparticipating providers have a higher fee schedule than that for participating providers.
answer
d. nonparticipating providers have a higher fee schedule than that for participating providers. Under Medicare Part B, Congress has mandated special incentives to increase the number of health care providers signing PAR (participating) agreements with Medicare. One of those incentives includes a 5% higher fee schedule for PAR providers than for non-PAR (nonparticipating) providers.
question
Under Medicare, a beneficiary has lifetime reserve days. All of the following statements are true, EXCEPT a. the patient has a total of 60 lifetime reserve days. b. lifetime reserve days are not renewable, meaning once a patient uses all of their lifetime reserve days, the patient is responsible for the total charges. c. lifetime reserve days are paid under Medicare Part B. d. lifetime reserve days are usually reserved for use during the patient's final (terminal) hospital stay.
answer
c. lifetime reserve days are paid under Medicare Part B. Lifetime reserve days are applicable for hospital inpatient stays that are payable under Medicare Part A, not Medicare Part B. REFERENCE: Green and Rowell, pp 528-529
question
The term used to describe a diagram depicting grouper logic in assigning MS-DRGs is a. interrelationship diagram. b. decision tree. c. case-mix index. d. grouper hierarchy
answer
b. decision tree.
question
Once all data are posted to a patient's account, the claim can be reviewed for accuracy and completeness. Many facilities have internal auditing systems. The auditing systems run each claim through a set of edits specifically designed for the various third-party payers. The auditing system identifies data that have failed edits and flags the claim for correction. These "internal" auditing systems are called a. scrubbers. b. groupers. c. pricers. d. encoders
answer
a. scrubbers.
question
To compute the reimbursement to a particular hospital for a particular MS-DRG, multiply the hospital's base payment rate by the a. conversion factor. b. geographic practice cost index. c. case-mix index. d. relative weight for the MS-DRG.
answer
d. relative weight for the MS-DRG.
question
Under the APC methodology, discounted payments occur when a. there are two or more (multiple) procedures that are assigned to status indicator "T." b. modifier-73 is used to indicate a procedure is terminated after the patient is prepared but before anesthesia is started. c. there are two or more (multiple) procedures that are assigned to status indicator "S." d. both there are two or more (multiple) procedures that are assigned to status indicator "T", and modifier-73 is used to indicate a procedure is terminated after the patient is prepared but before anesthesia is started.
answer
d. both there are two or more (multiple) procedures that are assigned to status indicator "T", and modifier-73 is used to indicate a procedure is terminated after the patient is prepared but before anesthesia is started. Discounts are applied to those multiple procedures identified by CPT codes with status indicator "T." REFERENCE: Green, pp 1007-1008
question
This prospective payment system is for ________ and utilizes a Patient Assessment Instrument (PAI) to classify patients into case-mix groups (CMGs). a. skilled nursing facilities b. home health agencies c. inpatient rehabilitation facilities d. long-term acute care hospitals
answer
c. inpatient rehabilitation facilities
question
Home Health Agencies (HHAs) utilize a data entry software system developed by the Centers for Medicare and Medicaid Services (CMS). This software is available to HHAs at no cost through the CMS Web site or on a CD-ROM. a. PACE (Patient Assessment and Comprehensive Evaluation) b. HHASS (Home Health Agency Software System) c. HAVEN (Home Assessment Validation and Entry) d. PEPP (Payment Error Prevention Program)
answer
c. HAVEN (Home Assessment Validation and Entry)
question
This information is published by the Medicare Administrative Contractors (MACs) to describe when and under what circumstances Medicare will cover a service. The ICD-9-CM and CPT/HCPCS codes are listed in the memoranda. a. LCD (Local Coverage Determinations) b. OSHA (Occupational Safety and Health Administration) c. SI/IS (Severity of Illness/Intensity of Service Criteria) d. PEPP (Payment Error Prevention Program)
answer
a. LCD (Local Coverage Determinations)
question
The term "hard coding" refers to a. HCPCS/CPT codes that are coded by the coders. b. ICD-9-CM codes that are coded by the coders. c. HPCS/CPT codes that appear in the hospital's chargemaster and will be included automatically on the patient's bill. d. ICD-9-CM codes that appear in the hospital's chargemaster and that are automatically included on the patient's bill.
answer
c. HPCS/CPT codes that appear in the hospital's chargemaster and will be included automatically on the patient's bill.
question
This is the amount collected by the facility for the services it bills. a. costs b. reimbursement c. charges d. contractual allowance
answer
b. reimbursement
question
Assume the patient has already met his or her deductible and that the physician is a Medicare participating (PAR) provider. The physician's standard fee for the services provided is $120.00. Medicare's PAR fee is $60.00. How much reimbursement will the physician receive from Medicare? a. $120.00 b. $ 48.00 c. $ 60.00 d. $ 96.00
answer
b. $ 48.00 If the physician is a participating physician (PAR) who accepts the assignment, he will receive the lesser of the "total charges" or the "PAR amount" (on the Medicare Physician Fee Schedule). Since the PAR amount is lower, the physician collects 80% of the PAR amount ($60.00) x .80 =$48.00, from Medicare. The remaining 20% ($60.00 x .20 = $12.00) of the PAR amount is paid by the patient to the physician. Therefore, the physician will receive $48.00 directly from Medicare.
question
This accounting method attributes a dollar figure to every input required to provide a service. a. cost accounting b. reimbursement c. charge accounting d. contractual allowance
answer
a. cost accounting
question
This is the difference between what is charged and what is paid. a. costs b. reimbursement c. charges d. contractual allowance
answer
d. contractual allowance
question
When appropriate, under the outpatient PPS, a hospital can use this CPT code in place of, but not in addition to, a code for a medical visit or emergency department service. a. CPT Code 99291 (critical care) b. CPT Code 35001 (direct repair of aneurysm) c. CPT Code 99358 (prolonged evaluation and management service) d. CPT Code 50300 (donor nephrectomy)
answer
a. CPT Code 99291 (critical care) When a patient meets the definition of critical care, the hospital must use CPT Code 99291 to bill for outpatient encounters in which critical care services are furnished. This code is used instead of another E;M code.
question
To monitor timely claims processing in a hospital, a summary report of "patient receivables" is generated frequently. Aged receivables can negatively affect a facility's cash flow; therefore, to maintain the facility's fiscal integrity, the HIM manager must routinely analyze this report. Though this report has no standard title, it is often called the a. remittance advice. b. DNFB (discharged, no final bill). c. periodic interim payments. d. chargemaster.
answer
b. DNFB (discharged, no final bill).
question
Assume the patient has already met his or her deductible and that the physician is a nonparticipating Medicare provider but does accept assignment. The standard fee for the services provided is $120.00. Medicare's PAR fee is $60.00 and Medicare's nonPAR fee is $57.00. How much reimbursement will the physician receive from Medicare? a. $120.00 b. $57.00 c. $60.00 d. $45.60
answer
d. $45.60 Since the physician is a nonparticipating physician, he will receive the nonPAR fee. The Medicare nonPAR fee is $57.00. Medicare will pay 80% of the nonPAR fee ($57.00 x 0.80 = $45.60). The patient will pay 20% of the nonPAR fee ($57.00 x 0.20 = $11.40). Since the physician is accepting assignment on this claim, he cannot charge the patient any more than the 20% co-payment. Therefore, the physician will receive $45.60 directly from Medicare.
question
CMS assigns one ________ to each APC and each ________ code. a. payment status indicator, HCPCS b. MS-DRG, CPT c. CPT code, HCPCS d. payment status indicator, ICD-9-CM
answer
a. payment status indicator, HCPCS REFERENCE: Green, pp 1007-1008
question
All of the following statements are true of MS-DRGs, EXCEPT a. a patient claim may have multiple MS-DRGs. b. special circumstances can result in an outlier payment to the hospital. c. the MS-DRG payment received by the hospital may be lower than the actual cost of providing the services. d. there are several types of hospitals that are excluded from the Medicare inpatient PPS.
answer
a. a patient claim may have multiple MS-DRGs.
question
This program, formerly called CHAMPUS (Civilian Health and Medical Program—Uniformed Services), is a health care program for active members of the military and other qualified family members. a. TRICARE b. Indian Health Service c. CHAMPVA d. workers'compensation
answer
a. TRICARE
question
Under Medicare Part B, Medicare participating (PAR) providers a. will be able to collect his or her total charges. b. accept, as payment in full, the allowed charge from the PAR fee schedule. c. agree to charge no more than 15% (limiting charge) over the allowed charge from the nonPAR fee schedule. d. agree to charge no more than 10% (limiting charge) over the allowed charge from the nonPAR fee schedule.
answer
b. accept, as payment in full, the allowed charge from the PAR fee schedule.
question
Regarding hospital emergency department and hospital outpatient evaluation and management CPT code assignment, which statement is true? a. Each facility is accountable for developing and implementing its own methodology. b. Each facility must use the same methodology used by physician coders based on the history, examination, and medical decision-making components. c. The level of service codes reported by the facility must match those reported by the physician. d. Each facility must use acuity sheets with acuity levels and assign points for each service performed.
answer
a. Each facility is accountable for developing and implementing its own methodology. REFERENCE: Green, p 538
question
CMS adjusts the Medicare Severity DRGs and the reimbursement rates every a. calendar year beginning January 1. b. month. c. quarter. d. fiscal year beginning October 1.
answer
d. fiscal year beginning October 1.
question
In calculating the fee for a physician's reimbursement, the three relative value units are each multiplied by the a. geographic practice cost indices. b. usual and customary fees for the service. c. national conversion factor. d. cost of living index for the particular region.
answer
a. geographic practice cost indices. The three relative value units are physician work, practice expense, and malpractice expense. These are adjusted by multiplying them by the geographical practice cost indices. Then, this total is multiplied by the national conversion factor.
question
If a participating provider's usual fee for a service is $700.00 and Medicare's allowed amount is $450.00, what amount is written off by the physician? a. none of it is written off b. $340.00 c. $250.00 d. $391.00
answer
c. $250.00 The participating physician agrees to accept Medicare's fee as payment in full; therefore, the physician would write off the difference between $700.00 and $450.00, which is 250.00.
question
Health plans that use ________ reimbursement methods issue lump-sum payments to providers to compensate them for all the health care services delivered to a patient for a specific illness and/or over a specific period of time. a. episode-of-care (EOC) b. fee-for-service c. capitation d. bundled
answer
c. capitation
question
________ offers voluntary, supplemental medical insurance to help pay for physician's services, outpatient hospital services, medical services, and medical-surgical supplies not covered by the hospitalization plan. a. Medicare Part A b. Medicare Part C c. Medicare Part B d. Medicare Part D
answer
c. Medicare Part B
question
Commercial insurance plans usually reimburse health care providers under some type of ________ payment system, whereas the federal Medicare program uses some type of ________ payment system. a. prospective, retrospective b. retrospective, prospective c. retrospective, concurrent d. prospective, concurrent
answer
b. retrospective, prospective REFERENCE: Green and Rowell, p 51 LaTour, Eichenwald-Maki, and Oachs, p 429 Sayles, pp 260-261
question
The difference between a rejected claim and a denied claim is that a. a rejected claim is sent back to the provider, errors may be corrected and the claim resubmitted. b. a rejected claim may be appealed, but a denied claim may not be appealed. c. a denied claim is sent back to the provider, errors may be corrected and the claim resubmitted. d. if a procedure or service is unauthorized, the claim will be rejected, not denied.
answer
a. a rejected claim is sent back to the provider, errors may be corrected and the claim resubmitted.
question
Some services are performed by a nonphysician practitioner (such as a Physician Assistant). These services are an integral yet incidental component of a physician's treatment. A physician must have personally performed an initial visit and must remain actively involved in the continuing care. Medicare requires direct supervision for these services to be billed. This is called a. "Technical component" billing. b. "Assistant" billing. c. "Incident to" billing. d. "Assignment" billing.
answer
c. "Incident to" billing.
question
The term used to describe the information-gathering fields on the UB-04 billing form is a. form locator. b. field box. c. data field. d. data locator.
answer
a. form locator.
question
The following services are excluded under the Hospital Outpatient Prospective Payment System (OPPS) Ambulatory Payment Classification (APC) methodology. a. surgical procedures b. clinic/emergency visits c. Durable Medical Equipment d. radiology/radiation therapy
answer
c. Durable Medical equipment REFERENCE: Green, pp 1007-1008, 1010
question
A HIPPS (Health Insurance Prospective Payment System) code is a five-character alphanumeric code. A HIPPS code is used by a. ambulatory surgery centers (ASCs) and skilled nursing facilities (SNFs) b. physical therapy (PT) centers and inpatient rehabilitation facilities (IRFs) c. skilled nursing facilities (SNFs) and inpatient rehabilitation facilities (IRFs) d. ambulatory surgery centers (ASCs) and physical therapy (PT) centers
answer
c. skilled nursing facilities (SNFs) and inpatient rehabilitation facilities (IRFs) .
question
The Centers for Medicare and Medicaid Services (CMS) will make an adjustment to the MS-DRG payment for certain conditions that were not present on hospital admission but were acquired during the hospital stay. Therefore, hospitals are required to report an indicator for each diagnosis. This indicator is referred to as a. a sentinel event. b. a hospital acquired condition. c. a payment status indicator. d. present on admission.
answer
d. present on admission.
question
A patient is admitted for a diagnostic workup for cachexia. The final diagnosis is malignant neoplasm of lung with metastasis. The present on admission (POA) indicator is a. Y = Present at the time of inpatient admission. b. U = Documentation is insufficient to determine if condition was present at the time of admission. c. N = Not present at the time of inpatient admission. d. W = Provider is unable to clinically determine if condition was present at the time of admission.
answer
a. Y = Present at the time of inpatient admission. The malignant neoplasm was clearly present on admission, although it was not diagnosed until after the admission occurred.
question
A patient undergoes outpatient surgery. During the recovery period, the patient develops atrial fibrillation and is subsequently admitted to the hospital as an inpatient. The present on admission (POA) indicator is a. Y = Present at the time of inpatient admission. b. U = Documentation is insufficient to determine if condition was present at the time of admission. c. N = Not present at the time of inpatient admission. d. W = Provider is unable to clinically determine if condition was present at the time of admission
answer
a. Y = Present at the time of inpatient admission. The atrial fibrillation developed prior to a written order for inpatient admission; therefore, it was present at the time of inpatient admission. REFERENCE: Green, p 1005
question
A patient is admitted to the hospital for a coronary artery bypass surgery. Postoperatively, he develops a pulmonary embolism. The present on admission (POA) indicator is a. Y = Present at the time of inpatient admission. b. U = Documentation is insufficient to determine if condition was present at the time of admission. c. N = Not present at the time of inpatient admission. d. W = Provider is unable to clinically determine if condition was present at the time of admission.
answer
c. N = Not present at the time of inpatient admission.
question
The nursing initial assessment upon admission documents the presence of a decubitus ulcer. There is no mention of the decubitus ulcer in the physician documentation until several days after admission. The present on admission (POA) indicator is a. Y = Present at the time of inpatient admission. b. U = Documentation is insufficient to determine if condition was present at the time of admission. c. N = Not present at the time of inpatient admission. d. W = Provider is unable to clinically determine if condition was present at the time of admission.
answer
b. U = Documentation is insufficient to determine if condition was present at the time of admission. Query the physician as to whether the decubitus ulcer was present on admission or developed after admission.
question
The present on admission (POA) indicator is required to be assigned to the ________ diagnosis(es) for ________ claims on ________ admissions. a. principal and secondary, Medicare, inpatient b. principal and secondary, all, inpatient and outpatient c. principal, all, inpatient d. principal, Medicare, inpatient and outpatient
answer
a. principal and secondary, Medicare, inpatient Green, pp 442, 1007
question
When the MS-DRG payment received by the hospital is lower than the actual charges for providing the inpatient services for a patient with Medicare, then the hospital a. can bill Medicare for the difference. b. absorbs the loss. c. makes a profit. d. can bill the patient for the difference.
answer
b. absorbs the loss
question
When a provider, knowingly or unknowingly, uses practices that are inconsistent with accepted medical practice and that directly or indirectly result in unnecessary costs to the Medicare program, this is called a. abuse. b. fraud. c. hypercoding. d. unbundling.
answer
When a provider, knowingly or unknowingly, uses practices that are inconsistent with accepted medical practice and that directly or indirectly result in unnecessary costs to the Medicare program, this is called abuse. fraud. hypercoding. unbundling.
question
ICD-10-PCS procedure codes are used on which of the following forms to report services provided to a patient? A. UB-04 B. MDC 02 C. CMS-1491 D. CMS-1500
answer
A. UB-04
question
Which of the following statements is FALSE regarding the use of modifiers with the CPT codes? a. All modifiers will alter (increase or decrease) the reimbursement of the procedure. b.Modifiers are appended to the end of the CPT code. c. Not all procedures need a modifier. d. Some procedures may require more than one modifier.
answer
a. All modifiers will alter (increase or decrease) the reimbursement of the procedure.
question
When health care providers are found guilty under any of the civil false claims statutes, the Office of Inspector General is responsible for negotiating these settlements and the provider is placed under a a. Recovery Audit Contract. b. Noncompliance Agreement. c. Fraud Prevention Memorandum of Understanding. d. Corporate Integrity Agreement.
answer
d. Corporate Integrity Agreement.
question
A Medicare Summary Notice (MSN) is sent to ________ as their EOB. a. patients (beneficiaries) b. physicians c. hospitals d. skilled nursing facilities
answer
a. patients (beneficiaries)
question
When payments can be made to the provider by EFT, this means that the reimbursement is a. sent to the provider by check. b. sent to the patient, who then pays the provider. c. combined with all other payments from the third party payer. d. directly deposited into the provider's bank account.
answer
d. directly deposited into the provider's bank account.
question
Coinsurance payments are paid by the _______ and determined by a specified ratio a. patient (insured) b. third-party payer c. facility d.physician
answer
a. patient (insured)
question
APCs are groups of services that the OPPS will reimburse. Which one of the following services is not included in APCs? a. screening exams b. preventive services c. organ transplantation d. radiation therapy
answer
c. organ transplantation
question
Health care claims transactions use one of three electronic formats, including which one of those listed below? a. CMS-1500 flat-file format b. National Claim Format c. ANSI ASC X12N 837 format d.Medicare Summary Notice format
answer
c. ANSI ASC X12N 837 format REFERENCE: Green, pp 1032-1033
question
When a patient is discharged from the inpatient rehabilitation facility and returns within three calendar days (prior to midnight on the third day) this is called a(n) a. per diem. b. qualified discharge. c. transfer. d. interrupted stay.
answer
d. interrupted stay.
question
HIPAA administrative simplification provisions require all of the following code sets to be used EXCEPT a. ICD-10-CM b. CDT c. CPT d. DSM
answer
d. DSM Green, p 1034
question
___ is a joint federal and state program that provides health care coverage to low-income populations and certain aged and disabled individuals. a. Medicare Part A b. Medicare Part B c. TRICARE d. Medicaid
answer
d. Medicaid REFERENCE: Green, p 995
question
You are calculating the fee schedule payment amount for physician services covered under Medicare Part B. You already have the relative value unit figure. The only other information you need is a. the facility's case-mix index. b. the facility's base rate. c. MS-DRG relative weights. d. a national conversion factor.
answer
d. a national conversion factor. REFERENCE: Green, p 1011 Sayles, p 272
question
____ is knowingly making false statements or representation of material facts to obtain a benefit or payment for which no entitlement would otherwise exist. a. Abuse b. Assault c. Whistle-blowing d. Fraud
answer
d. Fraud
question
There are seven criteria for high-quality clinical documentation. All of these elements are included EXCEPT a. precise. b. covered (by third-party payer). c. consistent. d. complete.
answer
b. covered (by third-party payer).
question
The category "Commercial payers" includes private health information and a. employer-based group health insurers. b. Medicare/Medicaid. c. TriCare. d. Blue Cross Blue Shield
answer
a. employer-based group health insurers.
question
For those qualified, the ____ rule states that hospitals are paid a graduated per diem rate for each day of the patient's stay, not to exceed the prospective payment DRG rate. a. MS-DRG b. POA Indicator c. OASIS d. IPPS Transfer
answer
d. IPPS Transfer REFERENCE: Green, p 1005
question
State Medicaid programs are required to offer medical assistance for a. all individuals age 65 and over. b. individuals with qualified financial need. c. patients receiving dialysis for permanent kidney failure. d. patients with end stage renal disease.
answer
b. individuals with qualified financial need.
question
______ classify inpatient hospital cases into groups that are expected to consume similar hospital resources. a. CMS b. IPPS c. DRG d. MAC
answer
c. DRG REFERENCE: Green, p 1002
question
The process by which health care facilities and providers ensure their financial viability by increasing revenue, improving cash flow and enhancing the patient's experience is called a. patient orientation. b. revenue cycle c. management. d. accounts receivable. auditing.
answer
b. revenue cycle
question
A patient is being cared for in her home by a qualified agency participating in Medicare. The data-entry software used to conduct all patient assessments is known as a. IRVEN. b. HAVEN. c. HHRG. d. RBRVS.
answer
b. HAVEN. Green, pp 442, 1007
question
A 19-year-old former patient faxes a request to your facility requesting the release of his medical records of all episodes of care to the Army. The release of information clerk should a. deny the request. b. send a letter informing him that faxed requests are not accepted. c. inform the young man that specific reports must be identified in his request. d. send the records as requested.
answer
d. send the records as requested.
question
In a hospital, a document that contains a computer-generated list of procedures, services, and supplies, along with their revenue codes and charges for each item, is known as a(n) a. Superbill. b. Chargemaster. c. Encounter form. d. Revenue master.
answer
b. Chargemaster.
question
A three-digit code that describes a classification of a product or service provided to a patient is a a. Revenue code. b. CPT code. c. ICD-10-CM code. d. HCPCS Level II code.
answer
a. Revenue code.
question
Under APCs, the payment status indicator "N" means that the payment a. is packaged into the payment for other services. b. is for ancillary services. c. is discounted at 50%. d. is for a clinic or an emergency visit.
answer
a. is packaged into the payment for other services
question
Under APCs, payment status indicator "S" means a. clinic or emergency department visit (medical visits). b. ancillary services. c. significant procedure, multiple procedure reduction does not apply. d. significant procedure, multiple procedure reduction applies.
answer
c. significant procedure, multiple procedure reduction does not apply. Under the APC system, there exists a list of status indicators (also called service indicators, payment status indicators, or payment indicators). This indicator is provided for every HCPCS/CPT code and identifies how the service or procedure would be paid (if covered) by Medicare for hospital outpatient visits. Payment Status Indicator (PSI) "S" means that if a patient has more than one CPT code with this PSI, none of the procedures will be discounted or reduced. They will all be paid at 100%.
question
Of the following, which is a hospital-acquired condition (HAC)? a. air embolism b. Stage I pressure ulcer c. traumatic wound infection d. breach birth
answer
a. air embolism REFERENCE: Green, p 1005
question
When a provider bills separately for procedures that are a part of the major procedure, this is called a. fraud. b. unbundling. c. discounting. d. packaging.
answer
b. unbundling.
question
If this physician is a nonparticipating physician who does NOT accept assignment for this claim, the total amount of the patient's financial liability (out-of-pocket expense) is a.$152.00. b. $38.00. c. $66.50. d. $190.00.
answer
c. $66.50. If a physician is a nonparticipating physician who does not accept assignment, he may collect a maximum of 15% (the limiting charge) over the non-PAR Medicare fee schedule amount. $190.00 = non-PAR Medicare schedule amount $190.00 x 0.20 = $38.00 = patient liable for 20% coinsurance (patient previously met the deductible) $190.00 x 0.80 = $152.00 = Medicare pays 80% $190.00 x 0.15 = $28.50 = 15% (limiting charge) over non-PAR Medicare fee schedule amount Physician can balance bill and collect from the patient the difference between the non-PAR Medicare fee schedule amount and the total charge amount. Therefore, the patient's financial liability is $38.00 (coinsurance) + 28.50 (limiting charge) = $66.50.
question
Based on CMS's DRG system, other systems have been developed for payment purposes. The one that classifies the non-Medicare population, such as HIV patients, neonates, and pediatric patients, is known as a. APR-DRGs. b. RDRGs. c. AP-DRGs. d.IR-DRGs.
answer
a. APR-DRGs. REFERENCE: Green, p 1004
question
Terminally ill patients with life expectancies of ______ may opt to receive hospice services. a. one year or less b. one year or more c. 6 months or less d. 6 months to a year
answer
c. 6 months or less
question
Joanie Howell presents to Dr. Franklin requesting rhinoplasty. Because Howell is covered by Medicare, Dr. Franklin must provide Howell with a. a Notice of Exclusion, because Howell's rhinoplasty may not be medically necessary. b. an Advance Beneficiary Notice, because rhinoplasty is not a Medicare covered service. c. a Notice of Exclusion, because rhinoplasty is not a Medicare covered service. d. an Advance Beneficiary Notice, because Howell's rhinoplasty may not be medically necessary.
answer
d. an Advance Beneficiary Notice, because Howell's rhinoplasty may not be medically necessary. Sayles, p 295
question
Generally, CMS requires the submission of a claim (CMS 1450) for inpatient services provided to a Medicare beneficiary for inpatient services. An exception to this requirement would be when a. the beneficiary refuses to authorize the submission of a bill to Medicare. b. the physician furnishes a covered service to the beneficiary. c. an ABN was given to the beneficiary for services unlikely to be covered by Medicare. d. attempts are made to charge a beneficiary for a service that is covered by Medicare
answer
a. the beneficiary refuses to authorize the submission of a bill to Medicare. When a beneficiary refuses to authorize the submission of a bill to Medicare, the Medicare provider is not required to submit a claim to Medicare.
question
In preparing the retention schedule for health records, the most concrete guidance in determining when records may be destroyed will be a. the average readmission rate for the facility. b. the available options for inactive records. d. Joint Commission and AOA standards regarding minimum retention periods.
answer
c. the statute of limitations in your state.
question
A lump-sum payment distributed among the physicians who performed the procedure or interpreted its results and the health care facility that provided equipment, supplies, and technical support is known as a. Fee-for-service. b. a global payment. c. a prospective payment system. d. capitation.
answer
b. a global payment.
question
The MS-DRG weight in a particular case is 2.0671 and the hospital's payment rate is $3,027. How much would the hospital receive as reimbursement in this case? a. $3,027.00 b. $6,257.11 c. $960.00 d. $5,094.10
answer
b. $6,257.11 Calculation: $3,027 x 2.0671 = $6,257.11 Sayles, pp 449-450
question
The first prospective payment system (PPS) for inpatient care was developed in 1983. The newest PPS is used to manage the costs for a. medical homes. b. assisted living facilities. c. home health care. d. inpatient psychiatric facilities.
answer
d. inpatient psychiatric facilities.
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