Financial Management and Accounts Receivable Flashcards
7 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 7 Financial Management and Accounts Receivable flashcards as text
A patient's check is returned by the bank marked 'NSF.' What does NSF stand for and what is the correct next step?
Answer: Non-sufficient funds; contact the patient and repost the charge to the account
NSF means non-sufficient funds; the payment must be reversed on the account and the patient contacted to arrange an alternative payment.
Which federal law regulates the practices of third-party debt collectors attempting to collect medical bills?
Answer: Fair Debt Collection Practices Act (FDCPA)
The FDCPA sets rules for how debt collectors may contact patients, prohibiting harassment or deceptive practices when collecting medical debts.
A patient has a Medigap (Medicare Supplement) policy. After Medicare pays its portion, the Medigap plan typically covers:
Answer: The patient's deductible and/or coinsurance amounts
Medigap policies are designed to cover the patient's share of costs such as deductibles and coinsurance that Medicare does not pay.
When a medical office writes off a balance as 'bad debt,' the appropriate accounting entry is to:
Answer: Credit accounts receivable and debit bad debt expense
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).
A practice receives an overpayment from a commercial insurer. The correct action is to:
Answer: Refund the overpayment to the insurer promptly and document the transaction
Keeping an overpayment from an insurer without reporting and refunding it can constitute fraud; timely refund and documentation is required.
Which statement best describes the difference between a co-pay and a deductible?
Answer: A co-pay is a fixed amount paid per visit; a deductible is the annual amount paid before insurance benefits begin
A co-pay is a set fee due at each service encounter, while a deductible is the yearly amount a patient must pay before the insurer begins covering costs.
A medical administrative assistant notices a claim has been pending with the insurer for 45 days without payment or denial. The best next step is to:
Answer: Follow up with the payer via phone or portal to check claim status and document the contact
Proactively following up on pending claims and documenting each contact is essential to prevent timely filing denials and ensure revenue cycle efficiency.