CMAA Financial Management and Accounts Receivable 5

Question 1

A patient's check is returned by the bank marked 'NSF.' What does NSF stand for and what is the correct next step?

Accepted Answer

Non-sufficient funds; contact the patient and repost the charge to the account

Answer

NSF means non-sufficient funds; the payment must be reversed on the account and the patient contacted to arrange an alternative payment.

Question 2

Which federal law regulates the practices of third-party debt collectors attempting to collect medical bills?

Accepted Answer

Fair Debt Collection Practices Act (FDCPA)

Answer

The FDCPA sets rules for how debt collectors may contact patients, prohibiting harassment or deceptive practices when collecting medical debts.

Question 3

A patient has a Medigap (Medicare Supplement) policy. After Medicare pays its portion, the Medigap plan typically covers:

Accepted Answer

The patient's deductible and/or coinsurance amounts

Answer

Medigap policies are designed to cover the patient's share of costs such as deductibles and coinsurance that Medicare does not pay.

Question 4

When a medical office writes off a balance as 'bad debt,' the appropriate accounting entry is to:

Accepted Answer

Credit accounts receivable and debit bad debt expense

Answer

Writing off bad debt removes the receivable from the asset column (credit A/R) and records the loss as an expense (debit bad debt expense).

Question 5

A practice receives an overpayment from a commercial insurer. The correct action is to:

Accepted Answer

Refund the overpayment to the insurer promptly and document the transaction

Answer

Keeping an overpayment from an insurer without reporting and refunding it can constitute fraud; timely refund and documentation is required.

CMAA - Certified Medical Administrative Assistant Practice Test