Chapter 63 Financial Management

Discuss and define basic dental terminology

CDT codes developed by ADA

Discuss the purpose of dental insurance

Dental insurance is to assist a patient financially with the cost of dental care, but the patient is responsible for the rest of the payment if insurance didn't cover all the cost.

Describe check writing

Don't want to make mistakes. You need a payee which is the person or thing that you are writing the check to the intended recipient, maker is the one from whose account the amount of the check will be withdrawn, and check register is a record of all checks issued and deposits made to the account

Identify the various types of prepaid dental programs.

HMO PPO EPO Direct Reimbursement Plan UCR

Identify insurance fraud

Include billing for services not provided, charging fees on a claim form to obtain a higher payment, and disregarding a copayment or deductible, accepting only the insurance payment, and writing off the deductible.

Describe functions of computerized practice management systems and manual bookkeeping systems.

Is to maintain account histories and practice records

Describe the importance and management of collections in the dental office

It is important to correctly manage collections in the dental office to manage the money owed to the practice and to collect it timely and organized.

Expenses and disbursements paid out form a business are called

accounts payable

constitute the overhead that a business requires in order to keep operating.

expenses

Describe how to make financial arrangements with a patient

financial arrangements should be made before treatment is initiated in an unhurried manner and in a private setting. Take into consideration the dentist's stated payment plans along with the sound business principles used in the management of the practice.

Detail claim forms processing

mail or electronically

Define managed care.

method of providing low-to-medium cost healthcare coverage to everyone

Explain dual coverage

patient has dental coverage under more than one plan

Identify common payroll withholding taxes and discuss the financial responsibility of the employer regarding this practice

. Taxes are state and federal, federal insurance contributions act, and other dedications such as local taxes. It is the financial responsibility of the employer to match the employee's FICA contribution and to make sure that all government reports are completed accurately.

Explain the purpose of business summaries

1. . Business summaries are important info for management, budgeting, and tax purposes because by keeping these records, the dentist and the accountant at any time can quickly tell what the practice expenses have been to the exact date.

Describe the procedure and purpose of claim forms follow-up

15 to make sure money earned has been collected by insurance company

Identify dental procedures and coding.

5-digit codes created and used to identify dental procedures universally

Identify the parties involved with dental insurance

-subscriber: who has the dental plan -dependent: spouse or child of subscriber -group: organization that negotiated dental insurance -carrier: insurance company -provider: dentist