Chapter 48-Billing and Collections

After what period does an account require additional collection activity?

120 days

What is the process of determining how long specific accounts and balances have been outstanding?

Aging

What indicates that a patient has a credit balance in a computerized billing system?

The patient's balance is a negative number

A patient with an overdue account may request that he or she be allowed to make monthly payments instead of putting the account into collection. What should the medical assistant do?

Prepare a written credit agreement with the patient

Which of the following cases is most likely to be tried in a small claims court?

Failure to pay two months' rent before moving out of an apartment

Which of the following items of information should the medical office NOT include in a written credit agreement with a patient?

An interest rate based on the patient's payment history

Which bills may be handled in a different manner from those of other patients?

All of the above

If a patient has filed bankruptcy under Chapter XIII, what must have occurred for the office to receive some payments?

The patient must have an outstanding balance owed to the office.

For which of the following do banks usually charge an extra fee?

Stopping payment on a check

Cathy is a 16-year-old who goes to the doctor for an HIV test. Which is the best method for the office to collect the amount due if Cathy does not want her parents to know that the test was done?

Ask Cathy to pay at the time of the visit.

If a patient whose account is in collection makes an appointment, what is the usual policy?

Charges for the new visit must be paid in full before the patient will be seen.

When a collection agency sends a check to the medical office, what is the first step to post the check to the patient account?

Post a credit adjustment labeled Reverse Collection in the amount of the check received.

When a patient dies, how should the medical office send the final bill?

To the patient's address, headed "To the Estate of" and the patient's name

What is the term used for the outstanding amount owed when a bill is sent to that patient?

Balance due

What is overdraft protection?

An agreement that the bank will transfer money between accounts as needed

If a patient's account is overdue, when is it recommended to follow up an overdue bill with a telephone call?

90 days

In which situation should the medical office stop payment on a check?

The recipient of a check (payee) reports that it has been lost

What is the term used for a billing method in which bills are sent to some patients every week, although each patient receives only one bill each month?

Cycle billing

Which of the following is an advantage of using a computerized billing system?

The office can create accurate account aging reports.

Once an agreement has been made with the patient to accept monthly installments, what regulations apply to the written agreement?

Truth in Lending Act

If a medical office sends a collection letter to a patient, what should be included?

A specific date by which payment is required

What federal law contains restrictions about the way a debt collector can treat a debtor and prohibits harassment and threats against individuals who owe money?

Fair Debt Collection Act

If a patient whose account is in collection calls the office and states that he is sending a check for a portion of the outstanding amount, what should the medical assistant tell him?

To send the check to the collection agency

When the medical office is trying to locate a patient who has "skipped" with a large balance due, what should the medical assistant do?

All of the above.

When calling an individual who owes money to the medical office, what is the medical assistant allowed to do?

Call the individual at work one time, so long as the reason for the call is not given to a third party.

When is the first bill sent to a patient?

At the next scheduled billing after insurance has paid

Dr. Blank sent an account owing $1,000 to a collection agency. The agency charged its usual fee of 40%. After collection of the amount owed, what was the amount received by Dr. Blank from the collection agency?

$600.00

Assuming that a deceased patient had a will, who is responsible to pay outstanding obligations of that patient?

The executor or administrator named in the will

What should accompany bills that are sent to patients for balances due?

One of the office claim messages

A patient who has declared bankruptcy under Chapter VII comes into the office and tries to pay part of the account. What should the medical assistant do?

Inform the patient that no creditor is allowed to collect a debt outside the bankruptcy process.

If the office writes a letter writing to a patient who has a delinquent account, when is the office allowed to threaten to send an account to collection?

If the office really intends to send the account to a collection agency

If a patient has filed bankruptcy under Chapter VII, what must have occurred for the medical office to collect an outstanding balance?

The office must have a signed written credit agreement with the patient.

To whom does a bank usually charge a fee for an NSF (not sufficient funds) check?

Both the owner of the account and the party that attempts to cash the check.

If a patient has overpaid on his or her account, what does the medical office usually do?

Adjust the patient balance

If a patient's check is returned by the bank marked NSF, how does the medical assistant enter it to the patient account?

As a debit adjustment that increases the patient's balance

When an account is sent to collection, what is done to prevent further bills from being sent?

The balance on the account is changed to zero using a debit (negative) adjustment.

If the physician's office decides to take a patient to small claims court to try to collect a balance, who usually represents the medical facility?

Medical assistant or other office staff member

If the billing for a medical office is done by a private company, which tasks are performed in the medical office?

Enter patient charges into the computer.

If a patient's account is turned over to a collection agency, and the patient is given a reasonable period of time to find another physician, how should the letter be mailed?

Certified Mail with Return Receipt

At what point is a patient account considered overdue if there is no specific credit agreement?

30 days after being billed

Balance due

Total amount owed

Bankruptcy

Legal process by which the debts of an individual or business are resolved if they cannon be paid

Claim message

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

Collection agency

A firm that is in the business of collecting overdue accounts

Credit balance

A negative balance on a patient account usually a result of an overpayment

Skip

Account for which no billing information is available

Truth in Lending Statement

A written document that meets the legal requirement to disclose the terms of a loan in terms that the borrower can understand

Account aging

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

Equal Credit Opportunity Act

Federal law that prevents discrimination

Fair Credit Report Act

Requires credit bureaus to supply correct and complete information to businesses to use in evaluating a person's application for credit, insurance, or employmen

Bankruptcy Abuse Prevention and Consumer Act of 2005

Revision of federal bankruptcy laws that attempts to make it more difficult for individuals to file under Chapter 7, by which most of the debts are forgiven by establishing a means test to determine if individuals are able to pay some of their debts. It also makes the process of filling for bankruptcy more difficult and expensive. Debtors are still able to file for bankruptcy under Chapter 13.

What is the advantage to the office of a weekly billing cycle?

Improves cash flow & work flow

Give examples of two special situations that may affect billing.

Minor & Deceased