Ch # 49: Billings & Collections

Question 1

The process of finding out how long specific account balances have been out standing

An account is considered overdue after 30 days and r categorized as 30-60 days, 60-90 days and over 120 days. At 120 days the office will respond in either 2 ways: 1) send a letter 2 the patient threatening a lawsuit in small claims court or 2) send it 2 a collection agency

Answer 1

Account aging

Question 2

Total amount owed

Answer 2

Balance due

Question 3

Legal process by which the debts of an individual or business r resolved if they cannot b paid

Answer 3

Bankruptcy

Question 4

Messages encouraging payment of a bill, usually attached 2 or printed on the monthly statement

Answer 4

Claim message

Question 5

A firm that is in the business of collecting overdue accounts

Answer 5

Collection agency

Question 6

A - balance on a patient account, usually a result of an overpayment

Answer 6

Credit balence

Question 7

A check that exceeds the amounts of funds in a bank account

Answer 7

Overdraft

Question 8

A bill sent 2 a patient that contains not only charges but also payments and adjustments that affects the balance that the patient must pay

Answer 8

Patient statement

Question 9

Account 4 which no billing information is available

Answer 9

Skip

Question 10

Legal requirement 2 disclose the terms of a loan in terms that the borrower can understand

Answer 10

Truth in lending

Question 11

When the office calls the bank 2 tell them not 2 process a check

Answer 11

Medical office stop payment

Question 12

The time between bill payments which frequencies can vary patient 2 patient but r regular intervals

Answer 12

Billing cycle

Question 13

This is when the patient and insurance payments exceeds the allotted charge

Their account balance will b a - # called a credit balance; the medical office owe’s the patient $. The MA will send the patient a check and letter explaining the payment

Answer 13

Overpayments and refunds

Question 14

In 1966, a law was passed that requires the fair treatment of debtors and identifies activities that r permitted and not permitted when contacting individuals who own $

-no frightening, verbally abusive or threatening calls
-no calls b4 8 am or after 10 pm
-may not threaten action that cannot b legally taken or is not
intended 2 b taken

Answer 14

Fair Debt Collection Practices Act

Question 15

Contains: (basic business letter format)
-addresses of medical office and the patient
-date
-reminding patient that their account is 120 days overdue and that
if not paid the office will either file a lawsuit or turn over their
account balance 2 a collection agency
-deadline 4 a response
-each office has their own policies regarding who should sign this
note

Should b sent Certified Mail w/a return receipt requested

Answer 15

Collection letter contents

Question 16

Do’s:
Collect necessary information b4 contacting the patient:
-who owes $
-how much $ is owed
-how long $ has been owed
-if their is any insurance claim pending
-has the insurance company processed the claim and/or made
any payment
When attempting 2 contact the patient, do not tell any1 other than
the patient that the reason 4 the call is debt collection
No misrepresentation 2 trick the patient in2 taking the call
No harassment or intimidation tactics, keep the conversation
pleasant and civil especially when discussing payment options
and obtain a verbal commitment 4 the date of the 1st payment
Follow up verbal agreement w/a letter reminding the patient of their
verbal commitment 2 make payments
No harassment but contacting the patient 2 remind them that they
have a verbal agreement 2 start payments, if passed due date

Don’t’s:
No early or late night calls
Never divulge 2 others that the office is trying 2 collect a debt
Never threaten
Do not end the conversation on vaguer terms-b specific
Do not make repeat calls

Answer 16

Guidelines 4 telephone collections

Question 17

Documents that allow patients 2 set up a schedule 2 pay off debt as long as they follow through w/agreed payment dates

If patient makes installments(payments w/out discussing it w/the medical office, this isn’t required

Answer 17

Credit agreements

Question 18

Each state has their own laws on how they must work, when they can make calls, what they can say 2 the patient and what tactics they can do 2 collect the payment

They charge 20%-40% of amount owed and no deals can b cut and can’t accept less than the full payment unless a payment plan w/the medical office had already been agreed on

Letter must b sent 2 the patient informing that the office will make no more appointments w/the patient unless they pay up front

Once sent 2 collections, the patient balance is returned to 0

Answer 18

Collection agency rules