Patient Financial Services & Collections Flashcards
6 cards from real AAPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Patient Financial Services & Collections flashcards as text
What does the Fair Debt Collection Practices Act (FDCPA) regulate?
Answer: The conduct of debt collectors when collecting consumer debts, including medical bills
The FDCPA prohibits abusive, deceptive, and unfair debt collection practices and gives consumers rights when dealing with third-party collectors.
When a practice turns over a patient balance to a collection agency, what typically happens?
Answer: The agency attempts to collect the debt, often for a percentage of the amount recovered
Collection agencies work on a contingency basis, keeping a percentage of the amount they recover from patients on behalf of the provider.
What is a 'small balance write-off' policy?
Answer: Writing off patient or payer balances below a specified threshold amount rather than pursuing collection
Small balance write-off policies save administrative costs by not pursuing amounts whose collection cost exceeds the balance owed.
What is a health insurance deductible?
Answer: The amount a patient must pay out-of-pocket before insurance begins covering costs
A deductible is the annual amount a patient pays for covered healthcare services before the insurance plan starts to pay its share.
In patient billing, who is the 'guarantor'?
Answer: The person legally responsible for paying the patient's bill
The guarantor is the individual responsible for the account balance, which may be the patient, a parent, or a legal guardian.
What is the purpose of a patient statement?
Answer: To inform the patient of their balance due after insurance has been applied
A patient statement details the services rendered, insurance payments received, adjustments made, and the remaining balance the patient owes.