Medical Assisting Ch. 31

An adjustment code would be used for which of the following?

canceled account balance

Account history

computer terminology for a patient ledger.

An outsourced billing service does not _____ statements.

create

The computer-generated statement is considered to be an efficient collection method for the office because it not only shows an itemized account of all transactions but the age of the account. The statement will show the portion of the amount due that is:

current over 30 days ​over 60 days

The account statement does typically include which type of information?

deductibles aging information account number

The account statement does not typically include which type of information?

diagnosis information

Statues of Limitation

establishes the number of years during which legal collection procedures may be filed against a patient.

The Truth in Lending Act (TILA) requires the disclosure of finance charges if allowing a patient to pay in more than _____ installments.

four

If you make collection calls before or after the legal hours in your state, you can be liable for:

harassment

Positive words that should be use in writing a collection letter

missed, overlooked and forgotten

How often should you run the report that reflects accounts with delinquent balances?

monthly

Methods of billing

monthly billing cycle billing computerized billing

Negative words that should not be use in writing a collection letter

neglected, ignored, and failure.

It is recommended that you use which of the following words when composing collection letters?

overlooked

When posting a payment to a patient's account, you must enter all but which of the following into the system?

previous balance

Fair Debt Collection Practices

prohibits debt collectors from abusive, unfair, or deceptive collection practices.

There are certain circumstances that warrant a statement be withheld (not generated / not sent to the patient). Which of the following is not considered one of the "certain circumstances"?

relatives of the provider

What are the typical results of outsourcing physician office work?

results in cost savings and higher quality.

Truth in Lending Act

specifies agreement between patient and physician regarding installments and finance charge disclosure.

List the 14 types of information found in a patients billing record and account statement

statement date and account number, name and address, date of services,description of services, total charges by service, patient payment, adjustments, deductibles, current balance, aging information, comment section or important notes, physician office or medical company name and contact information, method for payment

Credit transactions over $25,000 are exempt from the TILA unless:

there is a security interest taken in real property or a mobile home

Why is it important to notify the bank if a patient check is return NSF?

to verify if the funds are available and immediately redeposit if they are

When processing a credit balance, if a refund is due to a patient, you must:

verify that you have the patient's current address

Accounts are considered current if within ____ days of the billing date.

​30

Money due to the practice is known as:

​accounts receivable

When composing collection letters, avoid words that tend to antagonize, such as:

​ignored

Special circumstances exist for the medical assistant concerning collections. These circumstances include all but:

​patients whose accounts are less than 30 days old

What are the special circumstances concerning collections?

​skip patients ​patients under bankruptcy situations ​deceased patients

It is recommended that a practice which uses monthly billing set aside ____ for processing and mailing statements.

1-2 days

Describe and list the steps for how payments from collections agencies are entered on a patient account

1. It is a subtraction from the amount due 2.Make note in the explanations section stating "payment from collection agency" 3. Records the amount received 4. Subtract the amount paid by the agency from the total charges to create a new balance due amount

Which are the step(s) to locate a skip?

1. Place a telephone call to see whether the old phone number was transferred to a new address. 2. Call referring individuals to try to obtain a new address for the patient, although you must not indicate your reason for needing the new address other than that you need to verify it. 3. Use the Internet as a tool to locate a skip patient.

list the type of adjustments that would be made to the patient account when performing a credit balance.

1.Post the amount of overpayment in the credit column, proceeded by a negative (-) sign. 2. Indicate on the patient ledger (account history) the date the refund is being processed and to whom the refund is being issued. 3. Correctly complete the refund check to the patient. 4. Check all entries for accuracy and compare the refund amount with the amount indicated on the patient ledger or account history. 5. Obtain the proper signature(s) on the check. 6. Make a copy of the check for the accounts payable record

List the five steps that would be made to the patient's billing account if the office receives notification of NSF?

1.deduct the amount of the NSF check from the medial office's checking account balance. 2. in the patients account, add the amount of the NSF check back into the account by entering the amount in parenthesis in the paid column. 3. in addition, increase the patient's account balance by the same NSF amount. 4.add a brief explanation in the description column, such as NSF. 5. Add in the bank fee for NSF handling as a charge back to the patient.

If the patient balance is $450 and the patient agrees to pay $45 a month on the twelfth of each month with no interest being charged, it will take ________ to pay the bill in full.

10 months

A signed disclosure of finance charges form must be kept on file for how long?

2 Years

A signed disclosure of finance charges form must be kept on file for:

2 years

what a credit balance?

A credit balance is when the amount that paid is greater than was due or the account is being paid in advance of service provided.

Collection agencies may charge what for their services?

A percentage of the bill

What is a third-party check? Under what conditions can the office accept a third-party check from a patient?

A third-party check is generally one made out to the patient by someone unknown to the medical office. can be accepted if the check is from an insurance company

Describe the use of an alpha search.

An alpha search involves typing the first few letters of the name with the screen automatically listing all names of patients starting with those letters.

Cycle Billing

Billing commonly used in large practices

Which of the following statements is not true when making a collection call?

Call between the hours of 7:00 a.m. and 10:00 p.m.

List the three forms of payment

Checks, credit card, or cash.

When it is necessary to collect a bill owed by a deceased patient, the statement is sent to the estate of the deceased in care of any known next of kin at the patient's last known address. In this circumstance, which of the following statements is true?

Do not address the statement to a relative unless you have a signed agreement that that person will be responsible for the bills.

What types of services do PM software systems offer?

PM software can offer electronic claims posting, statistics, and monthly or YTD billing information.

The specific provisions of the Truth in Lending Act that explains in great detail who and what is covered by the regulation and gives specific disclosure and other requirements that have to be met for open-end and closed-end credit transactions are implemented through:

Regulation Z

If a statute of limitations is 2 years, and the last date on the patient account was September 2016, it could be collected through:

September 2018

The best collection opportunity after face-to-face contact is by:

Telephone

If a patient's check is returned to the office by the bank and is marked "NSF," it means:

There is not enough money in the patient's account to cover the check.

What should you do when a credit balance is discovered on a patient account?

When a credit balance is discovered on a patient account, a refund must be given to the patient or health insurance company.

Monthly Billing

a billing method more efficient in small practices

practice management software.

a category of software that provides the medical office the electronic components to deal with day-to-day financial operations of a practice.

Collection agencies may charge _________ for their services.

a percentage of the bill

The first step in the collections process is to:

advise patients of the office policy regarding payment when they call to schedule an appointment

The easiest and fastest method of searching for an account in practice management (PM) software is a(n) ____ search.

alpha

The patient's appreciation for the services received is highest

at the time of service

Where do aging dates usually appear on a patient statement?

at the top or bottom

The Fair Debt Collection Practices Act (FDCPA) does not cover which type of debts?

business