AAPC Patient Financial Services & Collections 2

Question 1

What does the Fair Debt Collection Practices Act (FDCPA) regulate?

Accepted Answer

The conduct of debt collectors when collecting consumer debts, including medical bills

Answer

The FDCPA prohibits abusive, deceptive, and unfair debt collection practices and gives consumers rights when dealing with third-party collectors.

Question 2

When a practice turns over a patient balance to a collection agency, what typically happens?

Accepted Answer

The agency attempts to collect the debt, often for a percentage of the amount recovered

Answer

Collection agencies work on a contingency basis, keeping a percentage of the amount they recover from patients on behalf of the provider.

Question 3

What is a 'small balance write-off' policy?

Accepted Answer

Writing off patient or payer balances below a specified threshold amount rather than pursuing collection

Answer

Small balance write-off policies save administrative costs by not pursuing amounts whose collection cost exceeds the balance owed.

Question 4

What is a health insurance deductible?

Accepted Answer

The amount a patient must pay out-of-pocket before insurance begins covering costs

Answer

A deductible is the annual amount a patient pays for covered healthcare services before the insurance plan starts to pay its share.

Question 5

In patient billing, who is the 'guarantor'?

Accepted Answer

The person legally responsible for paying the patient's bill

Answer

The guarantor is the individual responsible for the account balance, which may be the patient, a parent, or a legal guardian.

(AAPC) American Academy of Professional Coders Biller Certified Practice Test