Question 1

Claims adjudication involves making a determination about __________ charges, which is the maximum amount the payer will permit for each procedure or service, according to the patient's policy.

Accepted Answer

A)  allowed 
B)  denied 
C)  inconsistent 
D)  irregular

Question 2

Which person is responsible for paying the charges?

Accepted Answer

A)  enrollee 
B)  guarantor 
C)  patient 
D)  payer

Question 3

The claim is also checked against the __________, which is an abstract of all recent claims filed on each patient and helps determine whether the patient is receiving concurrent care for the same condition by more than one provider.

Accepted Answer

A)  chargemaster 
B)  common data file 
C)  encounter form 
D)  list of pre-existing conditions

Question 4

When applying the birthday rule, if policyholders have identical birthdays, the policy in effect the __________ is considered primary.

Accepted Answer

A)  longest 
B)  shortest

Question 5

Dr. Jones is a nonparticipating provider (nonPAR) for the ABC Health Insurance Plan. Anne Smith is treated by Dr. Jones in the office, for which a $100 fee is charged. Given the information in the table located below, calculate the nonPAR provider write-off amount.

Accepted Answer

A)  $10 
B)  $20 
C)  $30 
D)  $40

Question 6

Which is a legal action that can be used to recover a debt and is usually a last resort for a medical practice?

Accepted Answer

A)  adjudication 
B)  litigation 
C)  mediation 
D)  subrogation

Question 7

Which is the fixed amount the patient pays each time he or she receives health care services?

Accepted Answer

A)  coinsurance 
B)  copayment 
C)  deductible 
D)  premium

Question 8

Many physician practices contract out or __________ the delinquent accounts to a full-service collections agency that utilizes collection tactics, including written contacts and multiple calls from professional collectors.

Accepted Answer

A)  destroy 
B)  remotely file 
C)  outsource 
D)  suspend

Question 9

An account receivable that cannot be collected by the provider or a collection agency is called a bad debt. To deduct a bad debt, the amount must have been __________.

Accepted Answer

A)  deposited in the bank via electronic funds transfer 
B)  previously included in the provider's income 
C)  received from the third-party payer or patient 
D)  turned over to a collections agency for processing

Question 10

Which claims are organized by month and insurance company after submission to the payer, but for which processing is not complete?

Accepted Answer

A)  closed claims 
B)  clean claims 
C)  open claims 
D)  unassigned claims

Question 11

Which best assists providers in the overall collection of appropriate reimbursement for services rendered?

Accepted Answer

A)  accounts receivable management 
B)  claims submission and adjudication 
C)  coordination of benefits 
D)  delinquent claims processing

Question 12

Which requires providers to make certain written disclosures concerning all finance charges and related aspects of credit transactions (including disclosing finance charges expressed as an annual percentage rate)?

Accepted Answer

A)  Electronic Funds Transfer Act 
B)  Equal Credit Opportunity Act 
C)  Fair Credit Billing Act 
D)  Truth in Lending Act

Question 13

An appeal is documented as a(n) __________ why a claim should be reconsidered for payment.

Accepted Answer

A)  addendum to the patient record to justify 
B)  letter signed by the provider explaining 
C)  patient release of information form describing 
D)  resubmitted CMS-1500 insurance claim indicating

Question 14

Electronic claims are submitted directly to the payer after being checked for accuracy by billing software or a health care clearinghouse, which results in a __________ claim that contains all required data elements needed to process and pay the claim.

Accepted Answer

A)  clean 
B)  electronic 
C)  submitted 
D)  unassigned

Question 15

Which involves comparing the 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 services provided are covered benefits?

Accepted Answer

A)  claims adjudication 
B)  claims payment 
C)  claims processing 
D)  claims submission

Question 16

Procedures and services provided to a patient without proper authorization from the payer, or that were not covered by a current authorization, are called __________ services.

Accepted Answer

A)  approved 
B)  denied 
C)  submitted 
D)  unauthorized

Question 17

Which establishes the rights, liabilities, and responsibilities of participants in electronic fund transfer systems?

Accepted Answer

A)  Electronic Funds Transfer Act 
B)  Equal Credit Opportunity Act 
C)  Fair Credit and Charge Card Disclosure Act 
D)  Fair Credit Billing Act

Question 18

Clearinghouses process claims in an electronic flat file format, which requires conversion of CMS-1500 claims data to a standard format. Providers can also use software to convert claims to an electronic flat file format, also known as a(n) __________, which is a series of fixed-length records (e.g., 25 spaces for patient's name) submitted to payers as a bill for health care services.

Accepted Answer

A)  common data file 
B)  electronic media claim 
C)  patient ledger 
D)  source document

Question 19

A participating provider (PAR) contracts with a health insurance plan and accepts whatever the plan pays for procedures or services performed. This means that PARs __________ allowed to bill patients for the difference between the contracted rate and their normal fee.

Accepted Answer

A)  are 
B)  are not

Question 20

Sally Simmons is a patient of Dr. Tyler's. She received preventive services for her annual physical examination on May 17. The third-party payer determined the allowed charge for preventive services to be $100, for which the payer reimbursed the physician 80 percent of that amount. Sally is responsible for paying the remaining 20 percent directly to the physician. Thus, the physician will receive a check in the amount of __________ from the payer, and the patient will pay __________ to the physician.

Accepted Answer

A)  $20; $80 
B)  $50; $50 
C)  $80; $20 
D)  $100; $20

Exam 4: Processing an Insurance Claim