accept assignment
provider accepts as payment in full whatever is paid on the claim by the payer (except for any copayment and/or coinsurance amounts).
accounts receivable
the amount owed to a business for services or goods provided.
accounts receivable aging report
shows the status (by date) of outstanding claims from each payer, as well as payments due from patients.
accounts receivable management
assists providers in the collection of appropriate reimbursement for services rendered; includes functions such as insurance verification/eligibility and preauthorization of services.
allowed charge
the maximum amount the payer will reimburse for each procedure or service, according to the patient's policy.
ANSI ASC X12
an electronic format standard that uses a variable-length file format to process transactions for institutional, professional, dental, and drug claims.
appeal
documented as a letter, signed by the provider, explaining why a claim should be reconsidered for payment.
assignment of benefits
the provider receives reimbursement directly from the payer.
bad debt
accounts receivable that cannot be collected by the provider or a collection agency.
beneficiary
the person eligible to receive health care benefits.
birthday rule
determines coverage by primary and secondary policies when each parent subscribes to a different health insurance plan.
chargemaster
document that contains a computer-generated list of procedures, services, and supplies with charges for each; chargemaster data are entered in the facility's patient accounting system, and charges are automatically posted to the patient's bill (UB-04).
claims adjudication
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 procedures have been followed; and procedures performed or ser
claims attachment
medical report substantiating a medical condition.
claims processing
sorting claims upon submission to collect and verify information about the patient and provider.
claims submission
the transmission of claims data (electronically or manually) to payers or clearinghouses for processing.
clean claim
a correctly completed standardized claim (e.g., CMS-1500 claim).
clearinghouse
performs centralized claims processing for providers and health plans.
closed claim
claims for which all processing, including appeals, has been completed.
coinsurance
also called coinsurance payment; the percentage the patient pays for covered services after the deductible has been met and the copayment has been paid.
common data file
abstract of all recent claims filed on each patient.
Consumer Credit Protection Act of 1968
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 be
coordination of benefits (COB)
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.
covered entity
private sector health plans (excluding 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 (including Medicare, Medica
day sheet
also called manual daily accounts receivable journal; chronological summary of all transactions posted to individual patient ledgers/accounts on a specific day.
deductible
amount for which the patient is financially responsible before an insurance policy provides coverage.
delinquent account
one that has not been paid within a certain time frame (e.g., 120 days); also called delinquent account.
delinquent claim
claim usually more than 120 days past due; some practices establish time frames that are less than or more than 120 days past due.
delinquent claim cycle
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).
downcoding
assigning lower-level codes than documented in the record.
electronic data interchange (EDI)
computer-to-computer exchange of data between provider and payer.
electronic flat file format
series of fixed-length records (e.g., 25 spaces for patient's name) submitted to payers to bill for health care services.
electronic funds transfer (EFT)
system by which payers deposit funds to the provider's account electronically.
Electronic Funds Transfer Act
established the rights, liabilities, and responsibilities of participants in electronic funds transfer systems.
Electronic Healthcare Network Accreditation Commission (EHNAC)
organization that accredits clearinghouses.
electronic media claim
series of fixed-length records (e.g., 25 spaces for patient's name) submitted to payers to bill for health care services.
electronic remittance advice (ERA)
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.
encounter form
financial record source document used by providers and other personnel to record treated diagnoses and services rendered to the patient during the current encounter.
Equal Credit Opportunity Act
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.
Fair Credit and Charge Card Disclosure Act
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 a
Fair Credit Billing Act
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; card
Fair Credit Reporting Act
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,
Fair Debt Collection Practices Act (FDCPA)
specifies what a collection source may and may not do when pursuing payment of past due accounts.
guarantor
person responsible for paying health care fees.
litigation
legal action to recover a debt; usually a last resort for a medical practice.
manual daily accounts receivable journal
also called the day sheet; a chronological summary of all transactions posted to individual patient ledgers/accounts on a specific day.
noncovered benefit
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.
nonparticipating provider (nonPAR)
does not contract with the insurance plan; patients who elect to receive care from nonPARs will incur higher out-of-pocket expenses.
open claim
submitted to the payer, but processing is not complete.
out-of-pocket payment
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
outsource
contract out.
participating provider (PAR)
contracts with a health insurance plan and accepts whatever the plan pays for procedures or services performed.
past-due account
one that has not been paid within a certain time frame (e.g., 120 days); also called delinquent account.
patient account record
also called patient ledger; a computerized permanent record of all financial transactions between the patient and the practice.
patient ledger
also called patient ledger; a computerized permanent record of all financial transactions between the patient and the practice.
pre-existing condition
any medical condition that was diagnosed and/or treated within a specified period of time immediately preceding the enrollee's effective date of coverage.
primary insurance
associated with how an insurance plan is billed?the insurance plan responsible for paying health care insurance claims first is considered primary.
Provider Remittance Notice (PRN)
remittance advice submitted by Medicare to providers that includes payment information about a claim.
secondary insurance
billed after primary insurance has paid contracted amount.
source document
the routing slip, charge slip, encounter form, or superbill from which the insurance claim was generated.
superbill
term used for an encounter form in the physician's office.
suspense
pending.
Truth in Lending Act
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 be
two-party check
check made out to both patient and provider.
unassigned claim
generated for providers who do not accept assignment; organized by year.
unauthorized service
services that are provided to a patient without proper authorization or that are not covered by a current authorization.
unbundling
submitting multiple CPT codes when one code should be submitted.
value-added network (VAN)
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.