Financial Management and Accounting Flashcards
6 cards from real CMAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Financial Management and Accounting flashcards as text
What is a write-off (adjustment) in medical billing?
Answer: An amount the practice agrees not to collect
A write-off is an adjustment that reduces the patient's balance by an amount the practice has agreed not to collect, often due to a contractual discount.
Which form is used to submit claims to Medicare and most commercial insurers?
Answer: CMS-1500
The CMS-1500 is the standard paper claim form used by non-institutional providers to bill Medicare, Medicaid, and most commercial insurers.
What does 'aging report' refer to in a medical office?
Answer: A report tracking outstanding balances by time period
An aging report categorizes outstanding accounts receivable by how long balances have been unpaid (30, 60, 90, 120+ days).
What is co-insurance in a health insurance plan?
Answer: The percentage of costs shared between patient and insurer after the deductible
Co-insurance is the percentage of covered costs a patient pays after meeting the deductible, with the insurer paying the remainder.
What does 'balance billing' mean?
Answer: Billing the patient for the difference between the provider's charge and the insurer's payment
Balance billing occurs when a provider bills the patient for the difference between their charge and what the insurance company paid.
Which payment method describes a set monthly fee paid per patient regardless of services used?
Answer: Capitation
Capitation is a payment model in which providers receive a fixed monthly fee per enrolled patient, regardless of how many services are rendered.