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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
  1. A patient's insurance EOB shows a 'contractual adjustment' of $150. What does this mean?

    Answer: The provider must write off $150 due to the payer contract

    A contractual adjustment is the amount the provider agrees to write off as part of their contract with the insurance company.

  2. Which aging bucket indicates the most urgent collection priority?

    Answer: Over 120 days

    Accounts over 120 days are the most difficult to collect and represent the highest risk of bad debt, requiring urgent action.

  3. A patient asks to pay their $600 balance in monthly installments of $100. What document should the medical office use?

    Answer: Payment plan agreement

    A payment plan agreement formally documents the terms of the installment arrangement between the patient and the practice.

  4. When posting a Medicare remittance, the CARC code PR-2 indicates:

    Answer: The patient is responsible for the coinsurance amount

    CARC PR-2 (Patient Responsibility – Coinsurance) indicates the balance is the patient's coinsurance obligation.

  5. A practice's collection ratio is calculated as:

    Answer: Total payments collected divided by total net charges

    The collection ratio measures efficiency by dividing total collections by total net (after adjustments) charges, expressed as a percentage.

  6. Which of the following is an example of a 'credit balance' on a patient account?

    Answer: Insurance paid more than the amount billed

    A credit balance occurs when a payment exceeds the amount owed, such as when insurance overpays, and may require a refund.

  7. Under HIPAA, protected health information (PHI) on a billing statement must be:

    Answer: Limited to the minimum necessary for billing purposes

    HIPAA's minimum necessary standard requires that only the PHI needed to accomplish the billing purpose be disclosed on financial documents.