Common Medical Billing and Coding Terminology Flashcards
When a healthcare provider accepts as full payment the amount paid on a claim by the insurance company. This excludes patient responsible amounts such as coinsurance or copay.
Accept Assignment
When a claim is corrected which results in a credit or payment to the provider.
Adjusted Claim
The reimbursement amount an insurance company will pay for a healthcare procedure. This amount varies depending on the patients insurance plan. For 80/20 insurance, the provider accepts 80% of the allowed amount and the patient pays the remaining 20%.
Allowed Amount
One of the medical billing terms referring to the unpaid insurance claims or patient balances that are due past 30 days. Most medical billing software’s have the ability to generate a separate report for insurance aging and patient aging. These reports typically list balances by 30, 60, 90, and 120 day increments.
Aging
These are typically services a patient requires in a hospital setting that are in addition to room and board accommodations – such as surgery, lab tests, counseling, therapy, etc.
Ancillary Services
When an insurance plan does not pay for treatment, an appeal (either by the provider or patient) is the process of objecting this decision. The insurer may require documentation when processing an appeal and typically has a formal policy or process established for submitting an appeal. Many times the process and associated forms can be found on the insurance providers web site.
Appeal
You typically see these medical billing terms on the patient statement. This is the amount of the charges, determined by the patients insurance plan, the patient owes the provider. Many plans have a maximum annual deductible that once met is then covered by the insurance provider.
Applied to Deductible (ATD)
Insurance payments that are paid directly to the doctor or hospital for a patients treatment. This is designated in Box 27 of the CMS-1500 claim form.
Assignment of Benefits(AOB)
When a patient requires permission (or authorization) from the insurance company before receiving certain treatments or services.
Authorization
Person or persons covered by the health insurance plan and eligible to receive benefits.
Beneficiary
An organization of affiliated insurance companies (approximately 450), independent of the association (and each other), that offer insurance plans within local regions under one or both of the association’s brands (Blue Cross or Blue Shield). Many local BCBS associations are non-profit BCBS sometimes acts as administrators of Medicare in many states or regions.
Blue Cross Blue Shield (BCBS)
A fixed payment paid per patient enrolled over a defined period of time, paid to a health plan or provider. This covers the costs associated with the patients health care services. This payment is not affected by the type or number of services provided.
Capitation
Simply the insurance company or “carrier” the patient has a contract with to provide health insurance.
Carrier
Codes for medical procedures or services identified by the 5 digit CPT Code.
Category I Codes
Optional performance measurement tracking codes which are numeric with a letter as the last digit (example: 9763B).
Category II Codes
Temporary codes assigned for collecting data which are numeric followed by a letter in the last digit (example: 5467U).
Category III Codes
Civilian Health and Medical Program of the Uniformed Services. Recently renamed TRICARE. This is federal health insurance for active duty military, National Guard and Reserve, retirees, their families, and survivors.
CHAMPUS
Medical billing term for a complete submitted insurance claim that has all the necessary correct information without any omissions or mistakes that allows it to be processed and paid promptly.
Clean Claim
This is a service that transmits claims to insurance carriers. Prior to submitting claims the clearinghouse scrubs claims and checks for errors. This minimizes the amount of rejected claims as most errors can be easily corrected. Clearinghouses electronically transmit claim information that is compliant with the strict HIPAA electronic format standards.
Clearinghouse
Centers for Medicaid and Medicare Services. Federal agency which administers Medicare, Medicaid, HIPAA, and other health programs. Formerly known as the HCFA (Health Care Financing Administration). You’ll notice that CMS it the source of a lot of medical billing terms.
CMS
Medical claim form established by CMS to submit paper claims to Medicare and Medicaid. Most commercial insurance carriers also require paper claims be submitted on CMS-1500’s. The form is distinguished by it’s red ink.
CMS 1500
Medical Billing Coding involves taking the doctors notes from a patient visit and translating them into the proper diagnosis (ICD-9 or ICD-10 code) and treatment medical billing codes such as CPT codes. This is for the purpose of reimbursing the provider and classifying diseases and treatments.
Coding
Percentage or amount defined in the insurance plan for which the patient is responsible. Most plans have a ratio of 90/10 or 80/20, 70/30, etc. For example the insurance carrier pays 80% and the patient pays 20%. Note This is AFTER the patient has met the deductible.
Co-Insurance
This is in reference to the providers accounts receivable. It’s the ratio of the payments received to the total amount of money owed on the providers accounts.
Collection Ratio
The amount of charges a provider or hospital agrees to write off and not charge the patient per the contract terms with the insurance company.
Contractual Adjustment
When a patient is covered by more than one insurance plan. One insurance carrier is designated as the primary carrier and the other as secondary.
Coordination of Benefits (COB)
Amount paid by patient at each visit as defined by the insured plan.
Co-Pay
Current Procedural Terminology. This is a 5 digit code assigned for reporting a procedure performed by the physician. The CPT has a corresponding ICD-9 diagnosis code. Established by the American Medical Association. This is one of the medical billing terms we use a lot.
CPT Code
This is an application process for a provider to participate with an insurance carrier. Many carriers now request credentialing through CAQH. The CAQH credentialing process is a universal system now accepted by insurance company networks.
Credentialing
The balance that’s shown in the “Balance” or “Amount Due” column of your account statement with a minus sign after the amount (for example $50-). It may also be shown in parenthesis; ($50). The provider may owe the patient a refund.
Credit Balance
When claim information is automatically sent from Medicare the secondary insurance such as Medicaid.
Crossover claim
Date that health care services were provided.
Date of Service (DOS)
Summary of daily patient treatments, charges, and payments received.
Day Sheet
amount patient must pay before insurance coverage begins. For example, a patient could have a $1000 deductible per year before their health insurance will begin paying. This could take several doctor’s visits or prescriptions to reach the deductible.
Deductible
Physical characteristics of a patient such as age, sex, address, etc. necessary for filing a claim.
Demographics
Medical supplies such as wheelchairs, oxygen, catheter, glucose monitors, crutches, walkers, etc.
DME – Durable Medical Equipment
Abbreviation for Date of Birth.
DOB
When the insurance company reduces the code (and corresponding amount) of a claim when there is no documentation to support the level of service submitted by the provider. The insurers computer processing system converts the code submitted down to the closest code in use which usually reduces the payment.
Downcoding
Request by an insurance company or group medical plan by another insurance company or medical plan to determine if other coverage exists.
Duplicate Coverage Inquiry (DCI)
Abbreviation for diagnosis code (ICD-9 or ICD-10 code).
Dx
Claim information is sent electronically from the billing software to the clearinghouse or directly to the insurance carrier. The claim file must be in a standard electronic format as defined by the receiver.
Electronic Claim
An electronic paperless means of transferring money. This allows funds to be transferred, credited, or debited to a bank account and eliminates the need for paper checks.
Electronic Funds Transfer (EFT)
Medical billing terms for the Evaluation and Management section of the CPT codes. These are the CPT codes 99201 thru 99499 most used by physicians to access (or evaluate) a patients treatment needs.
E/M
Electronic Medical Records. Also referred to as EHR (Electronic Health Records). This is a medical record in digital format of a patients hospital or provider treatment. An EMR is the patient’s medical record managed at the providers location. The EHR is a comprehensive collection of the patients medical records created and stored at several locations.
EMR
Individual covered by health insurance.
Enrollee
Explanation of Benefits. One of the medical billing terms for the statement that comes with the insurance company payment to the provider explaining payment details, covered charges, write offs, and patient responsibilities and deductibles.
EOB
Electronic Remittance Advice. This is an electronic version of an insurance EOB that provides details of insurance claim payments. These are formatted in according to the HIPAA X12N 835 standard.
ERA
Insurance where the provider is paid for each service or procedure provided. Typically allows patient to choose provider and hospital. Some policies require the patient to pay provider directly for services and submit a claim to the carrier for reimbursement. The trade-off for this flexibility is usually higher deductibles and co-pays.
Fee For Service
Cost associated with each CPT treatment billing code for a providers treatment or services.
Fee Schedule
The portion of the charges that are the responsibility of the patient or insured.
Financial Responsibility
A Medicare representative who processes Medicare claims.
Fiscal Intermediary (FI)
A list of prescription drug costs which an insurance company will provide reimbursement for.
Formulary
When a provider receives payment or a patient obtains services by deliberate, dishonest, or misleading means.
Fraud
Group Health Plan. A means for one or more employer who provide health benefits or medical care for their employees (or former employees).
GPH
Name of the group or insurance plan that insures the patient.
Group Name
Number assigned by insurance company to identify the group under which a patient is insured.
Group Number
A responsible party and/or insured party who is not a patient.
Guarantor
Health Care Financing Administration. Now know as CMS (see above in Medical Billing Terms).
HCFA
Health Care Financing Administration Common Procedure Coding System. (pronounced “hick-picks”). Three level system of codes. CPT is Level I. A standardized medical coding system used to describe specific items or services provided when delivering health services. May also be referred to as a procedure code in the medical billing glossary.
HCPCS
American Medical Associations Current Procedural Terminology (CPT) codes.
HCPCS levels Level I
The alphanumeric codes which include mostly non-physician items or services such as medical supplies, ambulatory services, prosthesis, etc. These are items and services not covered by CPT (Level I) procedures.
HCPCS levels Level II