Term
| - ABA NumberIs marked NSF. Good office policy indicates that a call or letter should be made to the check writer and the check writer should be asked to pay for the NSF processing fee that is charged by the practice’s bank. |
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Definition
| Unique number on checks/ identifies a payer’s bank & location; assigned by the American Bankers Association (ABA). |
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Term
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Definition
| Verify: Correct Amount, Correct Date, & Made Out to Correct Provider Name. |
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Term
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Definition
| Only a signature is listed on the back of a check. |
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Term
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Definition
| Charges/payments are kept track of on this. |
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Term
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Definition
| The stub should be written out before the check. Some practices use computer-generated checks. Care must be taken so checks cannot be altered. If an error is made when writing a check, “VOID” must be written on the check & stub and the check should be kept for later reference. |
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Term
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Definition
| A business that pursues payments on debts owed by individuals or businesses. If a patient’s account has been turned over to a collection agency & they come into the office to settle their account, the MA must refer the patient to the collection agency handling the bill. |
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Term
| - Collection Agency Negotiations |
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Definition
Collection agencies negotiate with patients and come to a settlement on what the patient is able to pay on an unsettled bill. Collection agencies then take a specific percentage of any negotiated settlements for making a collection. This is calculated as follows:
Negotiated Settlement – (Negotiated Settlement x % in decimal form) |
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Term
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Definition
| To be sent out if the person responsible for the patient’s account does not respond to notices on the statements or telephone messages to call the physician’s office. These letters are most effective if they are firm, but positive. |
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Term
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Definition
| Journal for recording the day’s activities. |
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Term
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Definition
| Money placed in an account of a financial institution. When depositing currency, all bills should be in order, face up, & in the same direction. Should be done daily. |
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Term
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Definition
| AKA Superbill. Source document for billing purposes that contains account information & insurance codes for the date of service. |
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Term
| - Fair Labor Standards Act |
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Definition
| Legislation providing the standards for payment of hourly & salaried employees. Regulates minimum wage. |
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Term
| - Federal Truth in Lending Act & Fair Debt Collection Acts |
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Definition
| Legislation requiring a disclosure statement that informs a patient of a procedure’s total cost, including finance charges; required when the patient will make more than four payments. Affects the collections process in the office. |
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Term
| - Insurance Reimbursement |
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Definition
| All procedures that are covered by insurance are NOT reimbursed at the same level of payment. |
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Term
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Definition
| Records of debit & credit activity. Demographics/billing information. For each patient, the charges & payments should be recorded on an individualized ledger card. |
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Definition
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Term
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Definition
| Overdue when the balance has not been paid within 30 days. |
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Term
| - Overtime for Hourly Employees |
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Definition
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Term
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Definition
| Allows the patient to pay their outstanding balance in 2 to 3 payments. In this case, a written credit agreement with the patient should be drawn up stating the minimum amount due each month. |
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Term
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Definition
| Small amount of cash of hand |
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Term
| - Reconcile a Bank Statement |
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Definition
| Bank records & the medical office records are in agreement. |
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Term
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Definition
| State of a checkbook & a bank statement being in balance. |
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Term
| - Restrictive Endorsement |
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Definition
| Type of endorsement in which a payee indicates a sole purpose for funds; ex: endorsement “for deposit only” on the back of a check for deposit with signature indicates that check is to be used for that purpose only (deposited to that particular account) & therefore cannot be exchanged for cash. Checks received by a medical office are typically endorsed this way. |
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Term
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Definition
| Is marked NSF. Good office policy indicates that a call or letter should be made to the check writer and the check writer should be asked to pay for the NSF processing fee that is charged by the practice’s bank. |
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Term
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Definition
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Term
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Definition
| Tool used to analyze the effect of a transaction on an account. When using this, the amount recorded on the left side of the T is called a debit and the amount recorded on the right side is called a credit. |
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