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Account Aging
The process of finding out how long specific account balances have been out standing
Balance Due
Total amount owed
bankruptcy
the legal process by which the debts of an individual or business are resolved if they cannot be paid
Claim Message
messages encouraging payment pf a bill, usually attached to or printed on the monthly statement
Credit Balance
Money owed by the medical office to a patient usually due to an over payment
Collection agency
A firm that is the business of collecting overdue accounts
Overdraft
A check (or draft) that exceeds that amount of funds in a bank account
Patient Statement
A bill sent to a patient that contains charges, payments, and adjustments
Skip
Account for which no billing information is avalible
Truth In Lending
Legal requirement to provide written terms of a loan in language that can be easily understood
What is the advantage to the office of a weekly billing cycle?
The staff gets more time because the bills are spread throughout the month, rather than just the end.
If the medical office bills every week, how are the patient accounts usually divided?
The patients accounts are divided by 4 equal parts usually alphabetical.
What are 2 ways that bills can be produced?
A paper record at the end of each cycle, (month) or transfer info from computer to office computer linking info into patients financial record and office bookkeeping software.
2 special situations that may affect billing
If someone was treated for something before they died or if the patient is a minor.
What is overdraft protection?
It prevents a check from bouncing or a problem with a scheduled online payment in the event that the balance in the office checking account becomes to low
When should the medical office stop paying on a check?
Check may have been lost and new check issued or dispute between practice and vendor about a purchase or previous payment.
How should the medical assistant (MA) handle a check that is returned for insignificant funds?
Call patient and let them know about the increase account balance to cover the returned check and additional fee by bank.
When does a credit balance occur in a patient account, and how is a credit balance handled?
This occurs when theirs a over payment by a patient medical ast. processes a refund. its posted to the patients account bringing the balance back down to zero. A letter is sent to explain overpay.
When is a patients account considered overdue?
60 days accompanied by a claim message.
What are the usual categories of overdue accounts when a accounts receivable aging record is created?
30-60 days 60-90 days and no longer than 120 days.
What is the usual progression in collection activity when a patient's account is overdue?
Increase forcefulness
Why is it recommended to place a telephone call regarding an overdue account in addition to placing claim messages on the bill?
By confronting the person directly the MA can determine why there's been no activity related to the account (Claim messages are a reminder that the bill is overdue)
Why does the office need to have a arranged credit agreement with a patient?
Whenever the office and the patient make an agreement regarding installment payments (even if no interest is charged), the agreement must be in writing.
What does a truth in lending statement include and when should it be sent to a patient?
Includes facts about the maximum amount the patient may charge account, interest rate, how interest in computed and how monthly payment is computed, this should be sent when the credit agreement is made.
Identify three method to tryna and trace a patient whose bill is returned with the notation of "address unknown".
Call phone number, second call place of employment, lastly send letter by registered and certified mail with return receipt requested to individual at old address. Internet can be used with a fee,the more the office knows the more likely the individual ca
If the three methods identified in the previous question fail to locate a "skip", what should the medical office do to try and collect the bill.
The bill is turned over to the collection agency the sooner the agency requests account the better chance it has to collect amount owed on the bill.
What is the process for sending a patient account to a collection agency?
To collect accounts that have aged out.
How should a collection agency payment be entered on the patients ledger card and on the day sheet?
Patients balance is often adjusted to 0 the payment should be recorded on daily ledger and posted on account it was collected.
What is small claims court, and how might it be used in the medial office.
Small claims are special sessions of the local district court that deals only with civil lawsuits involving small amounts of money. offices use suits in court only if a patient has left the practice without paying bill in full.
If a patient has died, how and when should the bill for services rendered before death be sent?
The bill should be sent to the estate within 30 days the bill should be sent to "The state of".
If the bill of a deceased individual is not paid promptly, how should the MA follow up?
The bill would be put with other creditors bills and paid only when payment is approved by the probate court and the administrator or appointed by the court.
What is the status of outstanding medical bills if a person declared bankruptcy under chapter 7? Under chapter 13?
Cht.7 only secured creditors will be paid from the proceeds from the scale of any asserts. Cht.13 "adjustment of debts". the debtor (patient) pays a particular amount determined by the bankruptcy court to the court appointed trustee who then distributes t
Equal credit opportunity act.
Prevents discrimination when offering credit applicant must be informed if credit is deemed and has 60 days in writing reason for denial.
Fair debt collection practices act.
requires fair treatment of debtors and prevents unfair debt collection measures, harassment, false statements, threats installment agreements.
Federal truth in lending act.
Must be in writing if 4 or more payments were made (fewer if interest is charged) requires all creditors to provide AP warrants with a form disclosing in a clear obvious way all finance charges and terms.
Fair credit reporting act
Required credit bureaus to supply correct and complete info to businesses to use in evaluating a person application for credit insurance or employment.
Bankruptcy abuse and consumer protection act of 2005
Revision of federal bankruptcy laws that attempts to make it more difficult to file for bankruptcy.