Medicare Chapter 6 Flashcards
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Medicare Chapter 6 Flashcards

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Questions and Answers

What is the process of paying claims submitted or denying them after comparing the claim to benefit and coverage requirements called?

  • Approval
  • Adjudication (correct)
  • Assignment
  • Adjustment
  • What is the term for any change to the balance due of an account such as additional payment or write-off?

    Adjustment

    The Advanced Beneficiary Notice of Noncoverage (ABN) is an agreement for patients to sign if a physician thinks a service may be denied for payment.

    True

    What is the system for medical reimbursement that provides additional compensation as an incentive for high-quality healthcare called?

    <p>Advanced Alternative Payment Model (APM)</p> Signup and view all the answers

    What phrase describes a fee determined by an insurance carrier for a medical service?

    <p>Approved charges</p> Signup and view all the answers

    What is the term for the agreement allowing the insurance carrier to send payments directly to the service provider?

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

    Who are the patients entitled to receive Medicare benefits?

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

    The Medicare benefit period begins the day a patient enters a hospital and ends when the patient has not been a bed patient in any hospital or nursing facility for ___ consecutive days.

    <p>60</p> Signup and view all the answers

    What is the name of the federal agency responsible for Medicare and Medicaid?

    <p>Centers for Medicare and Medicaid Services (CMS)</p> Signup and view all the answers

    The Correct Coding Initiative (CCI) is aimed at promoting unbundling of procedural codes.

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

    What is the coverage gap in Medicare Part D known as?

    <p>Doughnut hole</p> Signup and view all the answers

    What type of equipment provides therapeutic benefits to patients in need?

    <p>Durable Medical Equipment (DME)</p> Signup and view all the answers

    What is defined as chronic kidney disease in an advanced state, eligible for Medicare?

    <p>End-Stage Renal Disease (ESRD)</p> Signup and view all the answers

    What is a list of covered drugs in each Medicare drug plan called?

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

    A public agency or private organization primarily engaged in providing pain relief and supportive services to terminally ill patients is known as ___ .

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

    What is the term for Medicare Part A, which covers inpatient care?

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

    Jurisdiction defines a geographical area over which a Medicare Administrative Contractor oversees processing of claims.

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

    What limits the fees that nonparticipating physicians may bill Medicare beneficiaries above the fee schedule amount?

    <p>Limiting charge</p> Signup and view all the answers

    What are decisions made by a Medicare contractor that dictate coverage for services called?

    <p>Local Coverage Determination (LCD)</p> Signup and view all the answers

    Medical necessity requires services to be consistent with diagnosis according to good medical practices.

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

    What is the joint federal and state program that helps pay medical costs for individuals with limited income?

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

    What established national health coverage for Americans 65 and older in 1965?

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

    The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) removed Social Security numbers from Medicare cards.

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

    Who is a private insurance carrier contracted by CMS to process Medicare Part A and B claims?

    <p>Medicare Administrative Contractor (MAC)</p> Signup and view all the answers

    Medicare Advantage plans are offered by the government as part of traditional Medicare.

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

    What index was created to replace Social Security numbers on Medicare insurance cards?

    <p>Medicare Beneficiary Identifier (MBI)</p> Signup and view all the answers

    What publication provides Medicare's general billing requirements for healthcare professionals?

    <p>Medicare Claims Processing Manual - Internet Only Manual</p> Signup and view all the answers

    What comprehensive listing is used by Medicare to pay doctors or other providers?

    <p>Medicare Fee Schedule (MFS)</p> Signup and view all the answers

    The Medicare Improvements for Patients and Providers Act (MIPPA) does not contain provisions for assistance to older adults.

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

    What term is used for patients who are on both Medicare and Medicaid simultaneously?

    <p>Medicare/Medicaid (Medi-Medi)</p> Signup and view all the answers

    Medicare Part A covers a bed patient in a hospital up to ___ days.

    <p>90</p> Signup and view all the answers

    Medicare Part B covers outpatient care, preventive services, and ___ services.

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

    What part of Medicare offers drug benefits under the Medicare Prescription Drug Improvement and Modernization Act?

    <p>Medicare Part D</p> Signup and view all the answers

    The primary insurance plan of a Medicare beneficiary that must pay for medical care before Medicare is called what?

    <p>Medicare Secondary Payer (MSP)</p> Signup and view all the answers

    What document explains the amount charged and covered by Medicare for services rendered?

    <p>Medicare Summary Notice (MSN)</p> Signup and view all the answers

    What specialized supplemental insurance policy helps cover costs not covered by Medicare?

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

    What program established to monitor and improve the quality of care for Medicare beneficiaries?

    <p>Quality Improvement Organization (QIO)</p> Signup and view all the answers

    The Recovery Audit Contractor (RAC) Initiative allows CMS to contract with audit companies for recovering overpayments.

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

    What document is generated after a claim is processed, explaining the decision made on the claim?

    <p>Remittance Advice (RA)</p> Signup and view all the answers

    What scale ranks physician services to determine Medicare fee schedules?

    <p>Resource-Based Relative Value Scale (RBRVS)</p> Signup and view all the answers

    Respite care provides temporary relief for caregivers of terminally ill patients during a ___ stay.

    <p>short-term</p> Signup and view all the answers

    What program offers income support for low-income individuals established by the Social Security Act?

    <p>Supplemental Security Income (SSI)</p> Signup and view all the answers

    What type of programs reward healthcare organizations based on the quality and efficiency of care?

    <p>Value-based programs</p> Signup and view all the answers

    Study Notes

    Adjudication and Adjustment

    • Adjudication: Process of paying or denying submitted claims based on benefit and coverage requirements.
    • Adjustment: Changes to account balances, including payments, write-offs, or error corrections in billing.

    Beneficiary Notices and Payment Models

    • Advance Beneficiary Notice of Noncoverage (ABN): Agreement for patients to sign when a service may be denied by Medicare, acknowledging responsibility for payment.
    • Advanced Alternative Payment Model (APM): System incentivizing providers for delivering high-quality, cost-efficient healthcare.

    Charges and Payments

    • Approved Charges: Fees deemed acceptable by insurance carriers, which may differ from the billed amount.
    • Assignment: Patient agreement for direct payment from the insurance carrier to the service provider.

    Medicare Structure

    • Beneficiaries: Individuals entitled to Medicare benefits.
    • Benefit Period: Starts when a patient is hospitalized and ends after 60 consecutive days without hospitalization.
    • Medicare: Established in 1965 to provide national health coverage for those aged 65 and over.

    Agencies and Programs

    • Centers for Medicare and Medicaid Services (CMS): Federal agency managing Medicare and Medicaid among other health services.
    • Medicare Access and CHIP Reauthorization Act of 2015 (MACRA): Legislation eliminating Social Security numbers on Medicare cards to combat identity theft.

    Coverage Determinations

    • Medical Necessity: Services must align with diagnoses and good medical practice, requiring adequate documentation for payment.
    • Local Coverage Determination (LCD): Specific Medicare contractor decisions on coverage based on medical necessity in their jurisdiction.
    • National Coverage Determination (NCD): Federal guidelines determining Medicare service coverage.

    Medicare Parts

    • Medicare Part A: Covers inpatient care, nursing facilities (up to 100 days), hospice, and some home health care.
    • Medicare Part B: Outpatient services, preventive care, durable medical equipment, with costs shared between the government and enrollees.
    • Medicare Part C: Medicare Advantage plans providing alternative coverage through private insurers.
    • Medicare Part D: Prescription drug coverage under the Medicare Prescription Drug Improvement and Modernization Act.

    Claims and Payments

    • Crossover Claim: Bill for services covered by both Medicare and another payer (Medicaid; Medigap), processed sequentially.
    • Medicare Claims Processing Manual: Guidelines for various health care professionals’ billing and claims submission.

    Financial Aspects

    • Premium: Regular payment required for insurance coverage.
    • Doughnut Hole: Coverage gap in Medicare Part D leading to increased out-of-pocket costs for prescription drugs.
    • Remittance Advice (RA): Document detailing claims decisions sent to service providers after claim processing.

    Quality and Regulations

    • Quality Improvement Organization (QIO): Program monitoring care quality for Medicare beneficiaries to enhance service delivery.
    • Merit-based Incentive Payment System (MIPS): Adjusts Medicare payments based on provider performance metrics.
    • Value-based Programs: Reward systems incentivizing healthcare organizations based on the quality and efficiency of care rather than service volume.

    Additional Terms

    • Medigap: Supplemental insurance for covering costs not met by Medicare.
    • Nursing Facility (NF): Facilities providing skilled nursing care and medically necessary services.
    • Recovery Audit Contractor (RAC) Initiative: A program for auditing Medicare claims to identify and recover overpayments.

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    Test your knowledge with these flashcards covering essential terms from Medicare Chapter 6. Understand key concepts like adjudication and adjustment in the context of Medicare claims and billing processes.

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