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Chapter 4
Development of an Insurance Claim
69
Health Care
Not Applicable
08/23/2010

Additional Health Care Flashcards

 


 

Cards

Term
primary insurance
Definition
associated with how an insurance plan is billed — the insurance plan responsible for pay¬ing health care insurance claims first is considered primary.
Term

Provider Remittance Notice (PRN)

Definition
remittance advice submitted by Medicare to providers that includes pay­ment information about a claim.
Term

PRN

Definition
Provider Remittance Notice
Term

noncovered benefit

Definition
any procedure or service reported on a claim that is not included on the payer's master benefit list, resulting in denial of the claim; also called noncovered procedure or uncovered benefit.
Term

nonparticipating provider (nonPAR)

Definition
does not contract with the insurance plan; patients who elect to receive care from nonPARs will incur higher out-of-pocket expenses.
Term
nonPAR
Definition
nonparticipating provider
Term

open claim

Definition
submitted to the payer, but processing is not complete.
Term

litigation

Definition
legal action to recover a debt; usually a last resort for a medical practice.
Term

manual daily accounts receivable journal

Definition
also called the day sheet; a chronological summary of all transac­tions posted to individual patient ledgers/accounts on a specific day.
Term
Fair Credit and Charge Card Disclosure Act
Definition
amended the Truth in Lending Act, requiring credit and charge card issuers to provide certain disclosures in direct mail, telephone, and other applications and solicitations for open-end credit and charge accounts and under other circumstances; this law applies to providers that accept credit cards.
Term

Fair Credit Billing Act

Definition
federal law passed in 1975 that helps consumers resolve billing issues with card issu­ers; protects important credit rights, including rights to dispute billing errors, unauthorized use of an account, and charges for unsatisfactory goods and services; cardholders cannot be held liable for more than $50 of fraudulent charges made to a credit card.
Term

Fair Credit Reporting Act

Definition
protects information col­lected by consumer reporting agencies such as credit bureaus, medical information companies and tenant screening services; organizations that provide informa­tion to consumer reporting agencies also have specific legal obligations, including the duty to investigate disputed information.
Term

Fair Debt Collection Practices Act (FDCPA)

Definition
specifies what a collection source may and may not do when pursuing payment of past due accounts.
Term
FDCPA
Definition
Fair Debt Collection Practices Act
Term

Equal Credit Opportunity Act

Definition
prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of any rights under the Consumer Credit Protection Act.
Term
electronic flat file format
Definition
series of fixed-length records (e.g., 25 spaces for patient's name) submitted to payers to bill for health care services
Term

electronic funds transfer (EFT)

Definition
system by which payers deposit funds to the provider's account electronically.
Term
EFT
Definition
electronic funds transfer
Term

Electronic Funds Transfer Act

Definition
established the rights, liabilities, and responsibilities of participants in elec­tronic funds transfer systems
Term

Electronic Healthcare Network Accreditation Commission (EHNAC)

Definition
organization that accredits clearing­houses.
Term
EHNAC
Definition
Electronic Healthcare Network Accreditation Commission
Term

electronic remittance advice (ERA) 

Definition
remittance advice that is submitted to the provider electronically and contains the same information as a paper-based remit­tance advice; providers receive the ERA more quickly.
Term
ERA
Definition

electronic remittance advice

Term
Covered entity
Definition
private sector health plans (exclud¬ing certain small self-administered health plans), managed care organizations, ERISA-covered health benefit plans (Employee Retirement Income Security Act of 1974), and government health plans (includ¬ing Medicare, Medicaid, Military Health System for active duty and civilian personnel, Veterans Health Administration, and Indian Health Service programs), all health care clearinghouses, and all health care pro¬viders that choose to submit or receive transactions electronically.
Term

downcoding

Definition
assigning lower-level codes than docu­mented in the record.
Term

coordination of benefits (COB)

Definition
provision in group health insurance policies that prevents multiple insur­ers from paying benefits covered by other policies; also specifies that coverage will be provided in a specific sequence when more than one policy covers the claim.
Term
COB
Definition
coordination of benefits
Term

Consumer Credit Protection Act of 1968

Definition
 was considered landmark legislation because it launched truth-in-lending disclosures that required creditors to commu­nicate the cost of borrowing money in a common lan­guage so that consumers could figure out the charges, compare costs, and shop for the best credit deal.
Term

day sheet

Definition
also called manual daily accounts receiv­able journal; chronological summary of all transac­tions posted to individual patient ledgers/accounts on a specific day.
Term

delinquent claim

Definition
claim usually more than 120 days past due; some practices establish time frames that are less than or more than 120 days past due.
Term

delinquent claim cycle

Definition
advances through various aging periods (30 days, 60 days, 90 days, and so on), with practices typically focusing internal recovery efforts on older delinquent accounts (e.g., 120 days or more).
Term

encounter form

Definition
financial record source document used by providers and other personnel to record treated diagnoses and services rendered to the patient during the current encounter.
Term

guarantor

Definition
person responsible for paying health care fees.
Term

outsource

Definition
contract out.
Term

participating provider (PAR)

Definition
contracts with a health insurance plan and accepts whatever the plan pays for procedures or services performed.
Term
PAR
Definition
participating provider
Term

past-due account

Definition
one that has not been paid within a certain time frame (e.g., 120 days); also called delin­quent account.
Term

patient account record

Definition
also called patient ledger; a computerized permanent record of all financial trans­actions between the patient and the practice.
Term

out-of-pocket payment

Definition
established by health insur­ance companies for a health insurance plan; usually has limits of $1,000 or $2,000; when the patient has reached the limit of an out-of-pocket payment (e.g., annual deductible) for the year, appropriate patient reimbursement to the provider is determined; not all health insurance plans include an out-of-pocket pay­ment provision.
Term

preexisting condition

Definition
any medical condition that was diagnosed and/or treated within a specified period of time immediately preceding the enrollee's effective date of coverage.
Term
value-added network (VAN)
Definition
clearinghouse that involves value-added vendors, such as banks, in the process­ing of claims; using a VAN is more efficient and less expensive for providers than managing their own systems to send and receive transactions directly from numerous entities
Term
VAN
Definition
value-added network
Term

 unassigned claim 

Definition
generated for providers who do not accept assignment; organized by year.
Term

unauthorized service

Definition
services that are provided to a patient without proper authorization or that are not covered by a current authorization.
Term

unbundling

Definition
submitting multiple CPT codes when one code should be submitted.
Term
suspense
Definition
pending.
Term
two-party check
Definition
check made out to both patient and provider.
Term
guarantor
Definition
person responsible for paying health care fees.
Term
closed claim
Definition
claims for which all processing, includ¬ing appeals, has been completed.
Term
ANSI ASC XI2 Standards
Definition
use a variable-length file format to process transactions for institutional, profes¬sional, dental, and drug claims.
Term
appeal
Definition
documented as a letter, signed by the provider, explaining why a claim should be reconsidered for payment.
Term
assignment of benefits
Definition
the provider receives reim¬bursement directly from the payer.
Term
beneficiary
Definition
the person eligible to receive health care benefits.
Term
birthday rule
Definition
determines coverage by primary secondary policies when each parent subscribes different health insurance plan.
Term
accept assignment
Definition
provider accepts as payment in full whatever is paid on the claim by the payer (except for any copayment and/or coinsurance amounts).
Term
accounts receivable
Definition
the amount owed to a business for services or goods provided.
Term

accounts receivable aging report

Definition
shows the status (by date) of outstanding claims from each payer, as well as payments due from patients.
Term
accounts receivable management
Definition
assists providers in the collection of appropriate reimbursement for services rendered; include functions such as insur¬ance verification/eligibility and preauthorization of services.
Term
allowed charge
Definition
the maximum amount the payer will reimburse for each procedure or service, according to the patient's policy.
Term
chargemaster
Definition
term hospitals use to describe a patient encounter form.
Term
claims adjudication
Definition
comparing a claim to payer edits and the patient's health plan benefits to verify that the required information is available to process the claim, the claim is not a duplicate, payer rules and proce¬dures have been followed, and procedures performed or services provided are covered benefits.
Term
claims attachment
Definition
medical report substantiating a medical condition.
Term
claims processing
Definition
sorting claims upon submission to collect and verify information about the patient and provider.
Term

claims submission 

Definition
the transmission of claims data (electronically or manually) to payers or clearing­houses for processing.
Term
dean claim
Definition
a correctly completed standardized claim (e.g., CMS-1500 claim).
Term
clearinghouse
Definition
performs centralized claims processing for providers and health plans.
Term
coinsurance
Definition
also called coinsurance payment; the percentage the patient pays for covered services after the deductible has been met and the copayment has been paid.
Term
common data file
Definition
abstract of all recent claims filed on each patient.
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