Chapter 13 Medical Insurance

concurrent care

medical assistance given to a patient who receives independent care from two or more physicians on the same date

suspended

claim status when the payer is developing the claim

development

process of gathering information to adjudicate a claim

determination

payer's decision about the benefits due for a claim

medical necessity denial

refusal by a plan to pay for a procedure that doers not meet its medical necessity criteria

remittance advice (RA)

document describing a payment resulting from a claim adjudication

HIPAA X12 835 Heal Care Payment and Remittance Advice (HIPAA 835)

electronic transaction for payment explanation

explanation of benefits

document showing a beneficiary how the amount of a benefit was determined

claim turnaround time

time period in which a health plan must process a claim

prompt-pay laws

state laws obligating carriers to pay clean claims within a certain time period

aging

classification of accounts receivable by length of time

insurance aging report

report grouping unpaid claims transmitted to payers by the length of time they remain due

HIPAA X12 276/277 Health Care Claim Status Inquiry/Response (HIPAA 276/277)

standard electronic transaction to obtain information on the status of a claim

claim status category codes

codes used on a HIPAA 277 to report the status group for a claim

pending

claim status when the payer is waiting for information

claim status codes

codes used on HIPAA 277 to provide a detailed answer to a claim status inquiry

claim adjustment group code

code used on an RA to indicate the general type of reason code for an adjustment

claim adjustment reason code (CARC)

code used on an RA to explain why a payment does not match the amount billed

remittance advice remark code (RARC)

code that explains payers' payment decisions

Medicare Outpatient Adjudication (MOA) remark codes

codes that explain Medicare payment decisions

electronic funds transfer (EFT)

electronic routing of funds between banks

autoposting

software feature enabling automatic entry of payments on a remittance advice

reconciliation

comparison of two numbers

appeal

request for reconsideration of a claim adjudication

claimant

person/entity exercising the right to receive benefits

appellant

one who appeals a claim decision

redetermination

first level of Medicare appeal processing

Medicare Redetermination Noice (MRN)

communication of the resolution of a first appeal for Medicare fee-for-service claims

overpayments

improper or excessive payments resulting from billing errors

Medicare Secondary Payer (MSP)

federally mandated program requiring private payers to be the primary payers for Medicare beneficiaries' claims