Medicare Chapter 8 Flashcards
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Medicare Chapter 8 Flashcards

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Questions and Answers

What act was Medicare created under?

Social Security Act

What year was Medicare created?

1965

What title number created Medicare?

18

What does Part A of Medicare cover?

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

What does Part B of Medicare cover?

<p>supplementary (outpatient) insurance</p> Signup and view all the answers

What does Part D of Medicare cover?

<p>outpatient prescription drug insurance</p> Signup and view all the answers

What is Part C of Medicare?

<p>parts A and B managed care</p> Signup and view all the answers

What is the largest single payer of health care services?

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

Who administers Medicare?

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

What are the eligibility requirements for Part A?

<p>Age 65; Vested after 10 years of payroll contributions; End stage renal disease; ALS</p> Signup and view all the answers

What is the eligibility requirement for Part B?

<p>If eligible for Part A you are eligible for Part B; must pay monthly premium</p> Signup and view all the answers

What are 3 benefits for Part A?

<p>inpatient hospital care; SNF; home health care and hospice</p> Signup and view all the answers

What are the out-of-pocket costs for Part A?

<p>deductible, co-insurance fees</p> Signup and view all the answers

What is the benefit period for Part A?

<p>admission to hospital until discharge from hospital or SNF for 60 days</p> Signup and view all the answers

What is cost-based reimbursement?

<p>money paid after service has been done; old way</p> Signup and view all the answers

What are prospective payment systems?

<p>money given before as an estimate for what client will need; new way</p> Signup and view all the answers

How are diagnosis related groups payments done?

<p>per episode (admission)</p> Signup and view all the answers

How are resource utilization group payments done?

<p>per day</p> Signup and view all the answers

What does Part B cover?

<p>outpatient care, home health care, DME, prosthetics and orthotics</p> Signup and view all the answers

What must be paid for Part B?

<p>annual deductible, co-insurance, monthly premium</p> Signup and view all the answers

How is Part B paid through?

<p>Medicare Physician Fee Schedules - fee for service</p> Signup and view all the answers

What is Medicare Advantage also known as?

<p>Part C</p> Signup and view all the answers

What is medigap?

<p>private insurance offered for purchase in addition to what client has</p> Signup and view all the answers

What are examples of possible reform for Medicare?

<p>raising eligibility age, means-testing</p> Signup and view all the answers

What is a benefit period?

<p>length of time from day of admission to the hospital to 60 days post-hospital or SNF discharge. Determines deductible and co-insurance payments for Medicare program</p> Signup and view all the answers

What is case mix adjustment?

<p>system of classifying patients for payment by clinical characteristics and anticipated resource utilization</p> Signup and view all the answers

What is certification in regard to Medicare?

<p>approval by a physician of a therapy plan of care for Medicare beneficiary</p> Signup and view all the answers

What is cost-based reimbursement definition?

<p>retrospective method of payment whereby provider reports costs of provider care and is paid by insurer</p> Signup and view all the answers

What are coverage determinations?

<p>process used by insurance companies to analyze and decide whether or not to pay for a claim</p> Signup and view all the answers

What is entitlement in Medicare?

<p>statutory guarantee to a set of benefits for eligible persons</p> Signup and view all the answers

What is a fee schedule?

<p>list of procedures with an associated payment amount for each service</p> Signup and view all the answers

What does medically necessary mean?

<p>determination by a provider with physician status that a health care intervention is required. Prerequisite for reimbursement.</p> Signup and view all the answers

What is a Medicare administrative contractor?

<p>nongovernment entity, typically an insurer, that receives, reviews and determines coverage for Medicare</p> Signup and view all the answers

What is Medicare Advantage?

<p>Part C; done by private insurers that is basically the same as Part A and B of Medicare</p> Signup and view all the answers

What is Medicare assignment?

<p>agreement between provider and Medicare to accept fee schedule as payment in full services</p> Signup and view all the answers

What is the Medicare physician fee schedule?

<p>list of procedures and prices for outpatient therapy services for the Medicare program</p> Signup and view all the answers

What is Medigap?

<p>term for private supplemental insurance plans that provide benefits not provided by traditional Medicare</p> Signup and view all the answers

What is multiple procedure payment reduction?

<p>cost containment that reduces practice expense portion of fee schedule amount for multiple procedure codes in the same visit</p> Signup and view all the answers

What is the physician quality reporting system?

<p>quality reporting mechanism for Medicare</p> Signup and view all the answers

What is the prospective payment definition book?

<p>form of health care payment whereby providers are paid a set fee prior to delivery of services.</p> Signup and view all the answers

What is social insurance?

<p>government-sponsored health insurance where people paying taxes are not eligible for benefits; benefits are paid to those who have a social need</p> Signup and view all the answers

What is sustainable growth rate?

<p>Medicare cost containment to limit growth in Medicare Part B by reducing standardized conversion factor</p> Signup and view all the answers

What is the therapy cap?

<p>annual financial limit placed on outpatient OT and PT; PT is combined with ST</p> Signup and view all the answers

What does vested mean in the context of Medicare?

<p>after payment of taxes into Medicare for 40 quarters (10 years) person is eligible for Part A benefits upon reaching retirement age, permanent disability or developing end-stage renal disease</p> Signup and view all the answers

Study Notes

Medicare Overview

  • Created under the Social Security Act.
  • Established in 1965.
  • Part 18 of the Act specifically created Medicare.
  • Largest single payer for health care services in the U.S.

Medicare Parts

  • Part A: Covers hospital insurance.
  • Part B: Provides supplementary outpatient insurance.
  • Part C: Known as Medicare Advantage, integrates Parts A and B managed care.
  • Part D: Offers outpatient prescription drug insurance.

Administration and Eligibility

  • Managed by the Centers for Medicare and Medicaid Services (CMS).
  • Eligibility for Part A: Age 65, 10 years of payroll contributions, End-stage renal disease, ALS (Amyotrophic lateral sclerosis).
  • If eligible for Part A, automatically eligible for Part B but must pay a monthly premium.

Benefits and Coverage

  • Part A Benefits: Inpatient hospital care, skilled nursing facility (SNF) care, hospice, and home health care.
  • Part B Coverage: Outpatient care, home health care, durable medical equipment (DME), prosthetics, and orthotics.

Costs and Reimbursement Methods

  • Out-of-pocket costs for Part A include deductibles and co-insurance fees.
  • Benefit period defined as the time from hospital admission to discharge plus 60 days.
  • Cost-based reimbursement: Payment after services rendered; considered the older method.
  • Prospective payment systems: Payment issued beforehand based on estimated needs; viewed as the newer method.
  • Diagnosis-related group (DRG) payments are made per episode of care; resource utilization group (RUG) payments are made per day.

Financing and Payment Models

  • Part B requires an annual deductible, co-insurance, and monthly premium.
  • Governed by the Medicare Physician Fee Schedule, which operates on a fee-for-service model.
  • Medigap: Private insurance supplement that covers costs not included in traditional Medicare plans.

Policy and Reform Considerations

  • Potential reforms include raising the eligibility age and means-testing for benefits.
  • The sustainable growth rate aims to contain Medicare Part B costs by adjusting a standardized conversion factor.
  • Case mix adjustments classify patients for payment based on clinical characteristics and expected resource use.

Miscellaneous Concepts

  • Certification: Physician approval of therapy plans for Medicare beneficiaries.
  • Coverage determinations: Process by insurance companies to decide on claims payments.
  • Entitlement: Guarantee of benefits to eligible individuals.
  • Medically necessary: Determination required for reimbursement by a provider.
  • Physician Quality Reporting System: Mechanism for quality reporting in Medicare services.

Financial Limitations

  • Therapy cap: Annual limit on outpatient occupational therapy and physical therapy, combined with speech therapy (ST).
  • Multiple procedure payment reduction: Cost containment strategy reducing payment for multiple procedure codes during a single visit.

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Test your knowledge on Medicare with these flashcards from Chapter 8. The quiz covers essential facts including its creation, parts A and B, and historical data. Perfect for anyone studying healthcare policies and programs.

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