An entry on an account constituting an addition to a revenue, net worth, or liability account; the balance in a person's favor
Devices issued by a bank or other financial institution, retail stores, and other businesses that allow the card holder to make purchases prior to paying for them.
Cards that look like credit cards and by which money can be withdrawn, bills paid, or purchases made directly from the holder's bank account without the payment of interest.
An entry of an account representing an addition to a expense or asset account or a deduction from a revenue, a net worth, or a liability account.
An organization under contract to the government (as well as some private plans) to act as financial representatives in handling insurance claims for providers of healthcare; also referred to as a fiscal internship.
An older method of tracking patient accounts that allows the figures to be proved accurate through mathematics formulas. Also known as write-it-once system.
Entering figures in an accounting system; transferring or carrying from a book of original entry ledger.
A loan or line of that is backed by a pledge of payment and usually obtained using collateral.
A person to whom property s legally committed to be administered for the benefit a beneficiary or held by an administrator to be distributed to multiple individuals or businesses.
What is the medical assistants responsibilities in the medical profession as far as fees go?
Informing the patient about financial matters, billing insurance companies or other third-party payers, and sometimes making payment arrangements.
What does a managed care contract mean for the physician?
It means that the physician has agreed to accept predetermined fees for specific services and procedures instead of the fee for service method.
How does the economic level of the community play a role in determining physician's fees?
Cost-of-living scales are considered when making set fee for an office.
What is a usual fee?
The physician's usual fee for a given service; the fee most frequently charged for the service.
What is a customary fee?
A range of the usual fees charged for the same service by physicians with similar training and experience who practice in the same geographic and socioeconomic area.
What is a reasonable fee?
The fee for an exceptionally difficult or complicated service or procedure that requires extraordinary time or effort by the physician.
Do third-party payers set fees for a physician?
Yes. They may provide a schedule of predetermined fees.
When is the physician's fee profile established?
When the fiscal agents for government-sponsored insurance programs and some private plans usual charges from each physician is complied and averaged over a given period, usually a year.
What is a fee profile used for?
In determining the amount of third-party liability for services under the program.
What may happen if a smaller fee is quoted and charged at a discount?
The lower fee can alter the physician's fee profile, Only the reduced fee can be recovered if it is necessary to bring litigation for payment, the insurance allowance may be reduced, the insurance company may take the position that the reduced fee is the physician's usual and customary fee and base its payment accordingly, and reducing fees and adjustments for professional courtesy may violate the physician's agreement with the third-party payer and could be considered fraudulent.
The amount amount of the reimbursement that the insurance company allows to be paid for a certain treatment or procedure.
When explaining costs to patient the physician or medical assistant must ____________.
Bring up the subject of payment and costs.
What is the purpose of advanced discussion of fees?
Helps the patient plan ahead for medical expenditures.
What is the guarantor's ultimate responsibility?
The entire bill, regardless whether insurance pays or not
Why should the staff help the patient with insurance concerns?
The staff is almost always more knowledgeable about the insurance than the patient, by helping the patient collect from the insurance they are making sure the physician gets paid, the medical assistant will gain knowledge about the insurance industry by helping the patient at every opportunity.
What is an adjustment column used for?
Entering write-offs, disallowances by insurance companies, and other adjustments
What information should account cards contain?
Name and address of the guarantor, insurance identification, social security number, home and business telephone numbers, name of employers, and special instructions for billing.
Patient's name, date, diagnosis, and procedures are posted when the patient leaves the office. The database retrieves charges and posts them onto a computerized record and the accounts receivable ledger.
All charges and payments for professional services are posted to the ledger daily. A seperate card or page is prepared for each patient at the time of the first visit.
What are some examples of special bookkeeping entries?
Adjustments, credit balances, refunds, insufficient funds checks
Name four ways that payment is accomplished.
Time of services, billing after making billing arrangements, insurance or other third-party billing, and billing and collection assistance.
Fair Debt Collection Practices Act
Requires that debt collectors act fairly in their collection efforts; it also restricts how and when a person can be contacted about outstanding debt.
What is a computer-generated statement?
Patient accounts that are established and stored in the computer so they can be produced whenever needed. Provides information such as services rendered on each date, charges for each service, the date on which a claim was submitted to the insurance company, the date of payment, and balance due from the patient.
Certain portions of the accounts receivable are billed at given times during the month, instead of preparation of all statements at the end of the month.
What are some persuasive collection procedures?
Telephone calls, collection reminders and letters, and personal interviews.
What are some special collection situations?
Skips, address change of service, claims against estates
A person that owes a balance and has moved or otherwise dropped contact without a forwarding address or phone number.
What are some advantages of small claims court?
Inexpensive, faster, no need for attorneys, no commission to collection agencies.
The person who signs his or her name on the back of the check for the purpose of transferring title to another person.
Any individual, corporation, or legal party who signs a check or any type of negotiable instrument.
Banking through the use of a mobile device, such as cell phones or wireless internet services.
Power of attorney
A legal statement in which a person authorizes another to act as his or her attorney or agent.
A capital sum of money due a debt or used as fund for which interest is either charged or paid.
What are some other names for online banking?
Personal computer banking, home banking, electronic banking, e-banking, or internet banking.
What services does online banking include?
Checking account balances, transferring funds between accounts, paying bills electronically, determining if a check or transaction has cleared the bank, downloading account information, viewing images of transactions, applying for loans and trading stocks or mutual funds
What are some advantages of online banking?
Ability to bank at one's convenience, ability to bank anywhere in the world, saves time and expenses, comprehensive method of money management, and ease of use of online programs.
What are some disadvantages of online banking?
Learning software, less versatile than physical,service options are somewhat limited, possible slight risk in comparison to physical banking, some fees charged for various online services.
A bank draft or to pay a certain sum of money payable on demand to a specified person or entity.
What makes a check negotiable?
Must be written and signed by a maker, contain a promise or order to pay a sum of money, be payable on demand or at fixed future date, and be payable to order or bearer.
What are the different types of checks?
Bank draft, cashier's check, limited check, money order, traveler's check, and a voucher check
A bank's own check drawn on itself and signed by the bank cashier or other authorized official.
The depositors own check that has been certified to be valid by an authorized official of the bank.
A check may be limited in the amount written on it and the time in which it may be presented for payment. Often used for payroll or insurance checks.
Contains a detachable voucher form that itemizes discounts, payable amounts, or other information
What is a bank routing number?
A nine-digit code printed on the bottom left side of checks or other negotiable instruments.
What does the first two numbers of the routing number identify?
Federal reserve district where the bank is located
What does the rest of the number of the routing number identify?
The individual bank identification number.
What does the ABA number identify?
The area where the bank on which the check is drawn is located and the particular bank within that area.
What are the three different types of checking accounts that a physician often requires?
An account for personal office expenses, an account for personal and family expenses, a high-yield interest-bearing account for funds reserved for paying insurance premiums, property taxes, and other seasonal expenses.
What are some reasons for stop payments?
Loss of check, Disagreement of a purchase, disagreement about a payment
What are four principal kinds of endorsements?
Blank endorsement, restrictive endorsement, special endorsement, qualified endorsement
Accounts receivable trial balances
A method of accounting in which income is recorded when earned and expenses are recorded when incurred
The entire property of a person, association, corporation, or estate applicable or subject to the payment of debits.
A financial statement for a specific date that shows the total assets, liabilities, and capital of the business
Cash basis of accounting
A method of accounting in which income is recorded when received and expenses are recorded when paid
Cash flow statement
A financial summary for specific period that shows the beginning balance on hand, the receipts and disbursements during the period, and the balance on hand at the end of the period.
The monetary value of a property or of an interest in a property in excess of claims or liens against it.
The state in which the total ending balances of patient ledgers equals the total of accounts receivables
What is Cash basis?
Charges for services are entered as income when payment is received, and expenses are recorded when they are paid
What are Accrual basis?
Income is considered earned when services have been performed or goods have been sold, even though payment may not have been received.
What should a financial summary show at all times?
How much was earned, how much was collected, how much is owed, and the distribution of expenses occurred.
What are the rules of bookkeeping?
Use of good penmanship, use the same pen and ink style consistently, keep columns in figures straight, and write well-formed figures, carry decimal points correctly, enter all charges and receipts immediately into the daily record or journal, endorse checks as soon as they are received, do not erase figures