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Healthcare Billing and Financial Practices Quiz

#1

What does the term 'EOB' stand for in healthcare billing?

Explanation of Benefits
Explanation

Summarizes the costs covered and not covered by an insurance plan after a healthcare service.

#2

Which of the following is a common healthcare billing code system?

ICD-10-CM
Explanation

International Classification of Diseases, 10th Edition, Clinical Modification for coding medical conditions.

#3

What does the term 'COB' refer to in healthcare billing?

Coordination of Benefits
Explanation

Process of managing multiple insurance policies to determine coverage responsibility.

#4

Which entity typically issues a Remittance Advice (RA) in healthcare billing?

Insurance company
Explanation

Document sent by the insurer explaining payments and denials for healthcare claims.

#5

What is the purpose of a CMS-1500 form in healthcare billing?

To file a claim for reimbursement from insurance companies
Explanation

Standard form used to submit healthcare claims for payment.

#6

What is the purpose of the CPT code system in healthcare billing?

To describe medical, surgical, and diagnostic services
Explanation

Enables standardized documentation and billing for medical procedures and services.

#7

What is a common method for healthcare organizations to check a patient's insurance eligibility?

Using online portals
Explanation

Verifying insurance coverage electronically through online platforms.

#8

What is the purpose of a 'clean claim' in healthcare billing?

To signify a claim with correct information and no defects
Explanation

A claim submitted with accurate and complete information, reducing processing delays.

#9

Which of the following is an example of a healthcare billing fraud?

Upcoding
Explanation

Inflating codes to charge for more expensive services than those provided.

#10

What is the primary purpose of medical coding in healthcare billing?

To assign numeric codes to diagnoses and procedures
Explanation

Systematic classification of medical information for billing and data analysis.

#11

What does 'RAC' stand for in the context of healthcare billing?

Recovery Audit Contractor
Explanation

An entity tasked with identifying and recovering improper payments in healthcare claims.

#12

What does the term 'HIPAA' stand for in healthcare billing?

Health Insurance Portability and Accountability Act
Explanation

Legislation ensuring privacy and security of health information.

#13

What is a common method for healthcare organizations to verify patient identity?

Requesting a driver's license
Explanation

Verifying patient identity by checking government-issued identification.

#14

What is the purpose of a 'charge capture' process in healthcare billing?

To record services and procedures provided to patients
Explanation

Capturing and documenting all billable services and procedures for accurate billing.

#15

What is the purpose of a 'medical claim scrubber' software in healthcare billing?

To process insurance claims electronically
Explanation

Automated tool to check and clean claims for accuracy before submission.

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