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Financial Terminology in the Medical Field Quiz

#1

What is a co-payment in medical insurance?

A fixed amount paid by a patient for covered services
Explanation

Fixed patient payment for covered services

#2

What does the term 'out-of-pocket maximum' refer to in health insurance?

The most a patient will have to pay for covered services in a plan year
Explanation

Maximum patient payment in a plan year

#3

What does 'fee-for-service' (FFS) mean in healthcare?

A payment model where services are unbundled and paid for separately
Explanation

Payment model for unbundled services

#4

What is 'Medicare'?

A federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease
Explanation

Federal insurance for seniors, disabled, and ESRD patients

#5

What does 'Medicaid' cover?

Healthcare services for individuals and families with low income and resources
Explanation

Healthcare services for low-income individuals and families

#6

What is a 'deductible' in an insurance policy?

The amount paid out-of-pocket before an insurer pays any expenses
Explanation

Out-of-pocket amount before insurance coverage

#7

What does capitation mean in healthcare financing?

A system where providers are paid for each patient enrolled over a period of time
Explanation

Providers paid per patient over time

#8

What is DRG (Diagnosis-Related Group)?

A system to classify hospital cases into one of initially 467 groups
Explanation

Classification system for hospital cases

#9

What is 'balance billing' in the context of healthcare services?

Sending a bill to the patient for the remaining balance after insurance payment
Explanation

Billing patient for remaining balance after insurance

#10

What does 'prior authorization' in health insurance entail?

Approval from an insurance company before receiving certain healthcare services
Explanation

Insurance approval before certain services

#11

In medical billing, what is an 'explanation of benefits' (EOB)?

A statement from an insurance company explaining what treatments and services were paid for
Explanation

Insurance statement on paid treatments and services

#12

What does 'coinsurance' mean in health insurance terms?

A percentage of the cost that the insured pays after the deductible has been met
Explanation

Percentage of cost paid after deductible

#13

What is the significance of the Resource-Based Relative Value Scale (RBRVS) in healthcare?

It determines the prices for medical services based on the resources required to provide them.
Explanation

Determines medical service prices based on resources

#14

What is the primary goal of 'value-based care'?

To improve patient outcomes by linking payments to the quality of care
Explanation

Linking payments to care quality to improve outcomes

#15

What is 'risk adjustment' in health insurance?

A financial adjustment applied to insurance premiums to reflect the health status of enrolled individuals
Explanation

Premium adjustment for enrolled individuals' health status

#16

What is 'stop-loss insurance' in the context of health care?

A type of reinsurance that provides protection for insurers against large claims
Explanation

Insurance protection against large claims for insurers

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