Chapter 49 Exam

Question 1

Equal Credit Opportunity Act

Answer 1

federal law that prevents discrimination based on sex, martial status, race, origin, religon, age, public assistance applicants

Question 2

Fair Debt Collection Practices Act

Answer 2

federal law that requires the fair treatment of debtors and prevents unfair debt collection measures - harassment, false statements, threats, etc.

Question 3

Federal Truth in Lending Act

Answer 3

requires creditors to provide applicants with a form disclosing in a clear and obvious way all finance charges and terms

Question 4

Truth in lending statement

Answer 4

legal requirement to disclose the terms of a loan to borrowers so they can understand them

Question 5

Fair Credit Reporting Act

Answer 5

requires credit bureaus to supply correct and complete information to businesses to use in evaluating a person’s application for insurance, credit or employment

Question 6

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Answer 6

revision of federal bankruptcy laws that make attempts to file for chapter 7 bankruptcy more difficult and expensive (most chapter 7 debts are forgiven by determining if the patient is able to pay for some of their debts)

Question 7

how many steps are there in the billing cycle?

Answer 7

6

Question 8

what are the 6 steps of the billing cycle?

Answer 8

• patient check in
• insurance eligibility & verification
• coding diagnosis, procedures & modifiers
• charge entry
• claims submission
• payment posting

Question 9

When is the first bill usually sent to a patient?

Answer 9

At the next scheduled billing after insurance has paid

Question 10

What is cycle billing?

Answer 10

the term used for a billing method in which bills to some patients are sent every week

Question 11

Which tasks are performed in the medical office if the billing is done by a private company?

Answer 11

Enter patient charges into computer system

Question 12

Why do people file bankruptcy?

Answer 12

For an individual/business to get out of crushing load of debt

Question 13

What has happened if a patient files Chapter 7?

Answer 13

A liquidation of assets

Question 14

If a patient has filed for Chapter 7 bankruptcy, what does the medical office need to have on file in order to collect an outstanding balance?

Answer 14

credit agreement

Question 15

What happens if a patient files Chapter 13? Who will be paid if a Chapter 13 bankruptcy has been filed?

Answer 15

Adjustment of debts, debtor (patient) owes court-appointed trustee who then distributes the money to creditors

Question 16

What is account aging?

Answer 16

The process of determining how long specific account balances have been outstanding

Question 17

0-30 days- how is this classified?

Answer 17

“No action needed”

Question 18

30-60 days- how is this classified?

Answer 18

“Payment is now due”

Question 19

60-90 days- how is this classified?

Answer 19

“Payment of this bill is now overdue”

Question 20

Longer than 120 days- what happens here?

Answer 20

letter to patient stating that if payment is not received the account is turned over to a collection agency

Question 21

What is a claim message? When do we use it?

Answer 21

Messages encouraging the payment of a bill, usually attached/printed on the monthly bill - when the bill is 31 days or more overdue

Question 22

What is a written credit agreement?

Answer 22

When the office and patient make an agreement regarding installment payments w or w/o interest