Healthcare Claims and Reimbursement Process
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Questions and Answers

The phrase _____ was coined to indicate payment of services rendered by someone other than the patient.

Third-party reimbursement

Since 2005, providers have been urged to:

Send claims electronically

The CMS-1500 form is accepted by:

Both Medicare and Medicaid

When a third-party payer identifies an error on the claim form, the claim is:

<p>Rejected with a request to resubmit the form with corrections</p> Signup and view all the answers

How many digits are in a National Provider Identifier (NPI) number?

<p>10</p> Signup and view all the answers

What is the first step in completing a claim form?

<p>Check for a photocopy of the patient's insurance card</p> Signup and view all the answers

Electronically processing claim forms to insurance carriers:

<p>Reduces the amount of preparation time for the claims processor</p> Signup and view all the answers

Which form is also known as the UB-04 form?

<p>CMS-1450</p> Signup and view all the answers

Which of the following is not a fee usually charged by a clearinghouse?

<p>Customer service fee</p> Signup and view all the answers

Which of the following is not an advantage of using an Electronic Claims Tracking (ECT) system?

<p>All claims are guaranteed to be paid if the forms are filled out correctly.</p> Signup and view all the answers

Manual claims tracking:

<p>Frequently causes payment delays</p> Signup and view all the answers

When following up on a delinquent claim, if the carrier tells you that it is still in process, you should:

<p>Request an anticipated date of payment</p> Signup and view all the answers

When applying an insurance adjustment to a patient's account, you are not typically required to post the:

<p>Name of the secondary insurance company that might be billed later</p> Signup and view all the answers

  • Number that identifies or refers to the claim that either the patient or the health provider submitted to the insurance company.

<p>Claim number</p> Signup and view all the answers

  • Beginning and end dates of the health-related service a patient received from a provider.

<p>Date of service</p> Signup and view all the answers

  • Amount of money that a patient's insurance company did not pay the provider.

<p>Not allowed amount</p> Signup and view all the answers

Amount of money a patient owes as a share of the bill.

<p>Coinsurance co-payment</p> Signup and view all the answers

Amount a provider billed the patient's insurance company for a service.

<p>Charge</p> Signup and view all the answers

Number assigned to a patient by the insurance company, which should match the number on the patient's insurance card.

<p>Insured id number</p> Signup and view all the answers

  • Code and brief description of the health-related service a patient received from a provider.

<p>Type of service</p> Signup and view all the answers

Name of the person who received the service.

<p>Patient</p> Signup and view all the answers

  • Authorizes benefits to be paid directly from a third-party payer to a provider.

<p>Assignment of benefits clause</p> Signup and view all the answers

  • Standard claim form used for billing in medical offices.

<p>CMS-1500</p> Signup and view all the answers

  • Book in which a list of insurance claims is kept.

<p>Manual insurance log</p> Signup and view all the answers

  • Type of payment used for centuries in the past.

<p>Bartered goods</p> Signup and view all the answers

  • This must be completed before submitting electronic media claims to Medicare.

<p>Standard Electronic Data Interchange (EDI) Enrollment form</p> Signup and view all the answers

  • In many instances, this will pay most, if not all, of the balance left over from the primary insurance to your physician and will leave little out-of-pocket expenses for the patient.

<p>Secondary insurance</p> Signup and view all the answers

Patient's signature on a form that permits the release of his or her information, allowing the claim to be filed on his or her behalf.

<p>Signature on file</p> Signup and view all the answers

Use of these allows a medical facility or provider's office to submit transactions faster and be paid sooner.

<p>Electronic Data Interchange (EDI) transactions</p> Signup and view all the answers

Form or document that may be sent to the patient by their insurance company after they have had a health care service that was paid by the insurance company (may take up to several months to receive).

<p>Explanation of Benefits (EOB) form</p> Signup and view all the answers

  • Developed to report the health care provided to the source of payment when third-party reimbursement was created.

<p>Claim form</p> Signup and view all the answers

  • Private or public company that often serves as the middleman between providers and billing groups, payers, and other health care partners for the transmission and translation of electronic claims information into the specific format required by payers.

<p>Clearinghouse</p> Signup and view all the answers

This amount is posted from the insurance payment or insurance adjustment.

<p>Credit column</p> Signup and view all the answers

  • Paper claim form that may be submitted by an institutional provider that meets certain requirements.

<p>CMS-1500</p> Signup and view all the answers

  • Sets forth the very specific requirements a provider must meet in order to submit paper claim forms and receive CMS payment.

<p>Administrative Simplification Compliance Act (ASCA)</p> Signup and view all the answers

  • The most common of these are federal and state agencies, insurance companies, and workers' compensation.

<p>Third-party reimbursers</p> Signup and view all the answers

Similar to the EOB but is the document provided by the payer to the provider.

<p>Remittance Advice form</p> Signup and view all the answers

These give you immediate access to the status of a claim or group of claims.

<p>Electronic Claims Tracking (ECT) systems</p> Signup and view all the answers

Information required to file a third-party claim on the CMS-1500 form includes all but:

<p>The co-pay receipt given to patient at time of visit</p> Signup and view all the answers

The steps to file a third-party claim and accurately complete the CMS-1500 form include:

Signup and view all the answers

When providers seek Medicare payment they do not deserve but have not knowingly or intentionally done so, this is known as:

<p>Abuse</p> Signup and view all the answers

When a person or company knowingly deceives Medicare as an intentional act to receive inappropriate payment from the program, this is known as:

<p>Fraud</p> Signup and view all the answers

With intent refers to:

<p>Abuse</p> Signup and view all the answers

Without intent refers to:

<p>Fraud</p> Signup and view all the answers

Billing for services, supplies, or equipment that were not medically necessary or not provided is known as:

<p>Fraud</p> Signup and view all the answers

Which of the following is not considered a true statement regarding the history of claims?

Signup and view all the answers

Which of the following is not a common claim error?

Signup and view all the answers

  • A private or public company that often serves as the middleman between providers and billing groups, payers, and other health care partners for the transmission and translation of electronic claims information into the specific format required by payers is known as:

<p>Clearinghouse</p> Signup and view all the answers

Have a 'claim scrubber' program that will scrub the claim before it is sent to payers.

<p>Electronic</p> Signup and view all the answers

  • A time-consuming process that frequently causes payment delays.

<p>Manual</p> Signup and view all the answers

  • Payers typically do not inform providers of the status of their claims.

<p>Manual</p> Signup and view all the answers

  • Requires office collection staff to perform the extra task of making phone calls to key payers to determine whether claims are being processed.

<p>Manual</p> Signup and view all the answers

  • Payment is quicker, claims usually received by a payer within 24 hours.

<p>Electronic</p> Signup and view all the answers

  • Office cost is reduced by eliminating the need for stamps, forms, and excess office staff labor.

<p>Electronic</p> Signup and view all the answers

  • Claims can be entered from anywhere with Internet access with real-time response.

<p>Electronic</p> Signup and view all the answers

  • Results can be viewed easily on a computer screen and information printed as needed.

<p>Electronic</p> Signup and view all the answers

Which of the following is not one of the necessary pieces of information to have before calling to follow up on a claim?

<p>The amount of copay received from the patient</p> Signup and view all the answers

The process of billing a secondary insurance company involves which of the following?

<p>After payment is received from the primary insurance, you must create a new bill with the secondary insurance information, or perform the electronic task of submitting the claim to the secondary insurer.</p> Signup and view all the answers

  • A group insurance that entitles members to services provided by participating hospitals, clinics, and providers.

<p>HMO</p> Signup and view all the answers

  • All of the providers in the network are required to file a claim to get paid.

<p>HMO</p> Signup and view all the answers

Patients do not have to file a claim, and the provider may not charge a patient directly or send a bill.

<p>HMO</p> Signup and view all the answers

  • A type of insurance in which contracted services are provided by providers who maintain their own offices.

<p>IPA</p> Signup and view all the answers

  • A network of providers and hospitals that are joined together to contract with insurance companies, employers, or other organizations to provide health care to subscribers and their families for a discounted fee.

<p>PPO</p> Signup and view all the answers

If a patient receives health care from a network provider, he or she would usually not need to file a claim.

<p>PPO</p> Signup and view all the answers

If the patient receives out-of-network services, he may have to pay the provider in full and then file a claim with the insurance to get reimbursed.

<p>PPO</p> Signup and view all the answers

  • Patients are responsible for any part of the provider's fee that the insurance does not pay.

<p>PPO</p> Signup and view all the answers

  • ________________ means that the doctor, provider, or supplier agrees (or is required by law) to accept the Medicare-approved amount as full payment for covered services.

<p>Assignment</p> Signup and view all the answers

Ambulatory payment classifications (APCs) are:

<p>All of the above</p> Signup and view all the answers

When claim form errors are identified by the third-party payers, the claim is then rejected. Which of the following is not considered an error?

<p>The correct place of service code</p> Signup and view all the answers

When a patient's health insurance plan supports the ability to check electronically the amount of copayment a patient will be responsible for and the amount of payment the insurance company will make; this is known as:

<p>Real time adjudication</p> Signup and view all the answers

Information required to post on the patient account includes all of the following except:

<p>The date the claim was submitted</p> Signup and view all the answers

The primary insurance information will be placed in _______ of the CMS-1500 form for secondary billing.

<p>Block 9</p> Signup and view all the answers

Study Notes

Third-Party Reimbursement

  • Payment for services rendered by someone other than the patient; known as third-party reimbursement.

Electronic Claims Processing

  • Since 2005, providers urged to submit claims electronically, enhancing efficiency.
  • Electronic Data Interchange (EDI) transactions streamline submission and payment processes.

Claim Forms

  • CMS-1500 form, accepted by both Medicare and Medicaid for insurance claims.
  • The UB-04 form is also referred to as the CMS-1450 form.

Claims Rejections and Adjustments

  • Claims are rejected with a request to correct and resubmit if errors are found.
  • An insurance adjustment can be posted without noting the secondary insurance company.

Claim Number and Service Dates

  • A claim number uniquely identifies submissions made to insurance companies.
  • Dates of service indicate the timeframe in which health-related services were provided.

Insurance Payments and Patient Responsibilities

  • Not allowed amount represents what the insurance company does not cover.
  • Coinsurance co-payment refers to a patient's share of the bill.
  • Patients may owe amounts for services billed by the provider.

Insurance Identification

  • Insured ID number should match the patient’s insurance card.

Assignment of Benefits

  • An assignment of benefits clause directs payment from the third-party payer to the provider.

Claims Tracking Systems

  • Manual claims tracking often causes delays and requires additional follow-up efforts.
  • Electronic Claims Tracking (ECT) systems provide immediate access to claim statuses.

Claims Filing Requirements

  • The steps for filing a third-party claim include verifying insurance details and the patient's information.
  • Essential information excludes co-pay receipts when filing third-party claims.

Fraud and Abuse

  • Abuse involves seeking undeserved Medicare payments without knowledge of wrongdoing.
  • Fraud is the intentional deception to gain payment from Medicare.

Clearinghouses

  • Third-party companies facilitate the transmission and translation of electronic claims, acting as intermediaries.

HMO and PPO Insurance Types

  • Health Maintenance Organization (HMO) mandates providers to file claims without direct billing to patients.
  • Preferred Provider Organization (PPO) offers flexibility but may require out-of-pocket payments for out-of-network services.

Real-Time Adjudication

  • A feature allowing patients to check copayment responsibilities and insurance payments instantly.

Claim Submission Guidelines

  • The Administrative Simplification Compliance Act (ASCA) dictates specific requirements for submitting paper claims.
  • For secondary billing on the CMS-1500 form, primary insurance information is entered in Block 9.

Insurance Claim History

  • Common claim errors do not include the correct place of service code.

Claiming for Secondary Insurance

  • To bill secondary insurance, a new bill must be created after the primary insurance payment is received.

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Description

Explore the intricacies of the healthcare claims process, including third-party reimbursements, electronic claims processing, and common claim forms. This quiz covers essential concepts like claims rejections, adjustments, and patient responsibilities, enhancing your understanding of health insurance mechanics.

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