Insurance Chapter 4: Prossessing An Insurance Claim

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Questions and Answers
  • 1. 

    Which means that the paitent and or insured has authorized the payer to reimburse the provider directly?

    • A.

      Accept assignment

    • B.

      Assignment of benifits

    • C.

      Coordination of benifits

    • D.

      Medical necessity

    Correct Answer
    B. Assignment of benifits
    Explanation
    Assignment of benefits refers to the process in which a patient or insured individual authorizes the payer (such as an insurance company) to reimburse the healthcare provider directly. This means that the patient does not need to pay the provider out-of-pocket and then seek reimbursement from the payer. Instead, the provider can directly receive payment from the payer, making it more convenient for the patient.

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  • 2. 

    Providers who o not accept assignment of Medicare benefits do not receive information included in the ______, which is sent to the patient.

    • A.

      Electronic flat file

    • B.

      Encounter form

    • C.

      Ledger

    • D.

      Medicare summary notice

    Correct Answer
    D. Medicare summary notice
    Explanation
    Providers who do not accept assignment of Medicare benefits do not receive information included in the Medicare summary notice, which is sent to the patient. The Medicare summary notice is a document that provides a summary of the services or supplies billed to Medicare on the patient's behalf. It includes information such as the date of service, the provider's name, the service provided, the amount billed, and the amount Medicare paid. This notice is sent to the patient to inform them about the services they received and the financial responsibility they may have.

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  • 3. 

    The transmissions of claims data to payers or clearinghouses is called claims...

    • A.

      Adjucation

    • B.

      Assignment

    • C.

      Processing

    • D.

      Submission

    Correct Answer
    D. Submission
    Explanation
    The term "claims submission" refers to the process of sending claims data to payers or clearinghouses for processing and reimbursement. This involves submitting all the necessary information and documentation related to the claim for review and evaluation. The other options provided - adjudication, assignment, and processing - are not specifically related to the act of transmitting claims data, making them incorrect choices.

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  • 4. 

    Which facilitates processing of nonstandard claims data elements into standard data elements?

    • A.

      Clearinghouse

    • B.

      EHNAC

    • C.

      Payer

    • D.

      Provider

    Correct Answer
    A. Clearinghouse
    Explanation
    A clearinghouse is a system that helps in the processing of nonstandard claims data elements into standard data elements. It acts as an intermediary between healthcare providers and payers, receiving claims data in various formats and converting them into a standardized format that can be easily understood and processed by the payer. This ensures seamless communication and efficient processing of claims, reducing errors and improving overall workflow in the healthcare industry.

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  • 5. 

    A series of fixed length records submitted to payers to build for health care services is an electronic

    • A.

      Flat file format

    • B.

      Funds transfer

    • C.

      Remittance adice

    • D.

      Source document

    Correct Answer
    A. Flat file format
    Explanation
    The correct answer is flat file format. A series of fixed length records submitted to payers to bill for healthcare services refers to a format in which the data is stored in a file with a fixed structure, where each record has a predetermined length. This format is commonly used for electronic data interchange in the healthcare industry, allowing for the efficient transfer of information between systems.

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  • 6. 

    Which is considered a covered entity?

    • A.

      EHNAC which accredits clearinghouses

    • B.

      Private sector payers that process electronic claims

    • C.

      Provider that submits paper based CMS-1500 claims

    • D.

      Small self administered health plan that processes manual claims

    Correct Answer
    B. Private sector payers that process electronic claims
    Explanation
    Private sector payers that process electronic claims are considered a covered entity. This means that they are subject to HIPAA regulations and are required to comply with privacy and security standards to protect the health information of their patients.

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  • 7. 

    A claim that is rejected because of an error or an omission is considered an  

    • A.

      Clean claim

    • B.

      Closed claim

    • C.

      Delinquent claim

    • D.

      Open claim

    Correct Answer
    D. Open claim
    Explanation
    An open claim refers to a claim that has been submitted but not yet processed or finalized by the insurance company. In this context, a claim that is rejected due to an error or omission would still be considered an open claim because it is still pending resolution. Once the error or omission is corrected and the claim is resubmitted, it can then be processed and either approved or denied. Therefore, an open claim is the most appropriate term to describe a rejected claim that is still awaiting resolution.

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  • 8. 

    An electronic claim is submitted by using _________ as its transmission media.

    • A.

      Facsimile machine

    • B.

      Magnetic tape

    • C.

      Scanning device

    • D.

      Software that prints claims

    Correct Answer
    B. Magnetic tape
    Explanation
    An electronic claim is submitted using magnetic tape as its transmission media. Magnetic tape is a medium that stores data in a magnetic form and is commonly used for transferring large amounts of data between systems. It allows for efficient and reliable transmission of electronic claims from one system to another.

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  • 9. 

    Which supporting documentation is associated with submission of an insurance claim?

    • A.

      Accounts recievable

    • B.

      Claims attachment

    • C.

      Common data file

    • D.

      Electronic remittance advice

    Correct Answer
    B. Claims attachment
    Explanation
    When submitting an insurance claim, a claims attachment is the supporting documentation that is associated with it. This attachment provides additional information and evidence to support the claim being made. It could include items such as medical records, invoices, receipts, or any other relevant documents that help validate the claim being submitted. The claims attachment serves as proof or documentation of the expenses or damages being claimed, and it helps the insurance company assess the validity and accuracy of the claim.

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  • 10. 

    Which is a group health insurance policy provision that prevents multiple payers from reimbursing benefits by other policies?

    • A.

      Accept assignment

    • B.

      Assignment of benefits

    • C.

      Coordination of benefits

    • D.

      Pre-existing condition

    Correct Answer
    C. Coordination of benefits
    Explanation
    Coordination of benefits is a group health insurance policy provision that prevents multiple payers from reimbursing benefits provided by other policies. This provision ensures that the total amount reimbursed for a claim does not exceed the actual expenses incurred by the insured individual. It helps to avoid overpayment and potential fraud by coordinating the benefits between different insurance policies and determining the primary and secondary payer for a specific claim.

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  • 11. 

    The sorting of claims upon submission to collect and verify information about the patient and provider is called claims

    • A.

      Adjucation

    • B.

      Authorization

    • C.

      Processing

    • D.

      Submission

    Correct Answer
    C. Processing
    Explanation
    The correct answer is processing because it accurately describes the action of sorting claims upon submission to collect and verify information about the patient and provider. Processing involves organizing and reviewing the claims to ensure they meet the necessary criteria and can be further processed for payment or denial.

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  • 12. 

    Which of the following steps would occur first?

    • A.

      Clearing house converts electronic claims into electronic flat file format

    • B.

      Clearinghouse verifies claims data and transmits to payers

    • C.

      Health insurance specialist batches and submits claims to clearinghouse

    • D.

      Health insurance specialist completes electronic or paper based claim

    Correct Answer
    D. Health insurance specialist completes electronic or paper based claim
    Explanation
    The health insurance specialist completing the electronic or paper-based claim would occur first because this step needs to be completed before the claim can be submitted to the clearinghouse. Once the claim is completed, it can then be batched and submitted to the clearinghouse for further processing. The clearinghouse will then verify the claims data and convert it into an electronic flat file format before transmitting it to the payers.

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  • 13. 

    Comparing the claim to payer edits and the patients health plan benefits is part of claims...

    • A.

      Adjucation

    • B.

      Processing

    • C.

      Submission

    • D.

      Transmission

    Correct Answer
    A. Adjucation
    Explanation
    Comparing the claim to payer edits and the patient's health plan benefits is part of claims adjudication. Adjudication refers to the process of evaluating and determining the validity and payment of a claim based on various factors such as payer policies, patient eligibility, and medical necessity. By comparing the claim to payer edits and the patient's health plan benefits, the adjudication process ensures that the claim meets all the necessary requirements and determines the appropriate payment or denial decision.

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  • 14. 

    Which describes any procedure or service reported on a claim that is not included

    • A.

      Medically unnecessary

    • B.

      Non-covered benefit

    • C.

      Pre-existing condition

    • D.

      Unauthorized service

    Correct Answer
    B. Non-covered benefit
    Explanation
    A non-covered benefit refers to any procedure or service that is not included in the coverage provided by an insurance plan. This means that the insurance company will not pay for or reimburse the cost of this particular service. It could be due to various reasons such as the service not being deemed medically necessary, the service being unauthorized or not approved by the insurance company, or the service being related to a pre-existing condition which is not covered by the insurance plan.

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  • 15. 

    Which is an abstract of all recent claims filed on each patient, used by the payer to determine whether the patient is receiving concurrent care for the same condition by more than one provider?

    • A.

      Common data file

    • B.

      Encounter form

    • C.

      Patient ledger

    • D.

      Remittance advice

    Correct Answer
    A. Common data file
    Explanation
    A common data file is an abstract of all recent claims filed on each patient, used by the payer to determine whether the patient is receiving concurrent care for the same condition by more than one provider. It serves as a centralized source of information that allows the payer to track and analyze the claims submitted by different providers for the same patient. By reviewing the common data file, the payer can identify any potential duplicate or overlapping services being provided to the patient and make informed decisions regarding payment and coverage.

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  • 16. 

    Which is the fixed amount patients receive each time they receive health care services?

    • A.

      Coinsurance

    • B.

      Copayment

    • C.

      Deductable

    • D.

      Insurance

    Correct Answer
    B. Copayment
    Explanation
    A copayment is a fixed amount that patients are required to pay each time they receive health care services. This payment is typically made at the time of service and is a predetermined, fixed cost that the patient is responsible for. It is separate from any deductibles or coinsurance that may also be required. Copayments help to share the cost of care between the patient and the insurance provider, and can vary depending on the specific health plan and the type of service being received.

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  • 17. 

    Which of the following steps would occur first?

    • A.

      Clearinghouse transmits claims data to payers

    • B.

      Payer approves claim for payment

    • C.

      Payer generates remittance advice

    • D.

      Payer performs claims validation

    Correct Answer
    A. Clearinghouse transmits claims data to payers
    Explanation
    The clearinghouse transmitting claims data to payers would occur first because it is the initial step in the claims process. The clearinghouse acts as an intermediary between healthcare providers and payers, sending the claims data from the provider to the payer for processing. Once the claims data is transmitted, the payer can then proceed with the subsequent steps such as approving the claim for payment, generating remittance advice, and performing claims validation.

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  • 18. 

    Which must accept whatever a payer reimburses for procedures or services performed?

    • A.

      Nonparticipating provider

    • B.

      Out-of-network provider

    • C.

      Participating provider

    • D.

      Value-added provider

    Correct Answer
    C. Participating provider
    Explanation
    A participating provider must accept whatever a payer reimburses for procedures or services performed. This means that they have agreed to a contract with the payer and have agreed to accept the reimbursement rates set by the payer for their services. This is in contrast to nonparticipating providers or out-of-network providers who may not have agreed to these reimbursement rates and may charge the patient additional fees. Value-added provider is not a term used in this context and does not provide a relevant explanation.

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  • 19. 

    Which is an interpretation of the birthday rule regarding two group health insurance policies when the parents of a child covered on both policies are married to each other and live in the same household?

    • A.

      The parent whose birth month and day occurs earlier in the calender year is the primary policy holder

    • B.

      The parent who was born first is the primary policy holder

    • C.

      Both parents are primary policy holders

    • D.

      The parent whose income is higher is the primary policy holder

    Correct Answer
    A. The parent whose birth month and day occurs earlier in the calender year is the primary policy holder
    Explanation
    The birthday rule states that if both parents have group health insurance policies and they are married to each other and live in the same household, the parent whose birth month and day occurs earlier in the calendar year is considered the primary policy holder. This means that their insurance policy will be primary and the other parent's policy will be secondary.

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  • 20. 

    Which is the financial record source document usually generated by a hospital? 

    • A.

      Chargmaster

    • B.

      Day sheet

    • C.

      Encounter form

    • D.

      Superbill

    Correct Answer
    A. Chargmaster
    Explanation
    A chargemaster is a financial record source document that is usually generated by a hospital. It contains a comprehensive list of all the services and procedures provided by the hospital, along with their corresponding charges. The chargemaster is used to bill patients and insurance companies for the services rendered. It ensures accurate and consistent pricing for the hospital's services and helps in maintaining financial records.

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  • 21. 

    (Refer to figure 4-20 of chapter 4) Which payers claim should be followed up first to obtain reimbursement?

    • A.

      Aetna California

    • B.

      Blue Cross Blue Shield Florida

    • C.

      Home Health Agency

    • D.

      Medicaid

    Correct Answer
    D. Medicaid
    Explanation
    Medicaid should be followed up first to obtain reimbursement because it is a government-funded program that provides health insurance to low-income individuals. Medicaid typically has stricter guidelines and requirements for reimbursement compared to private insurance companies like Aetna and Blue Cross Blue Shield. Additionally, since Medicaid is a government program, it may take longer to process claims and obtain reimbursement, so it is important to follow up with them first. The Home Health Agency may also need to be followed up with, but Medicaid should be the priority.

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  • 22. 

    Which protects information collected by consumer reporting agencies?

    • A.

      Equal Credit Opportunity Act

    • B.

      Fair Credit Reporting Act

    • C.

      Fair Dept Collection Practices Act

    • D.

      Truth In Lending Act

    Correct Answer
    D. Truth In Lending Act
    Explanation
    The Truth In Lending Act is a federal law that aims to protect consumers by requiring lenders to provide clear and accurate information about loan terms and costs. While it primarily focuses on promoting transparency in lending practices, it does indirectly protect the information collected by consumer reporting agencies. This is because the Act requires lenders to disclose certain information, such as the annual percentage rate (APR), which is calculated based on the consumer's credit information obtained from these reporting agencies. Therefore, the Truth In Lending Act indirectly safeguards the accuracy and privacy of consumer credit information.

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  • 23. 

    Which protects information collected by consumer reporting agencies?

    • A.

      Equal Credit Opportunity Act

    • B.

      Fair Credit Reporting Act

    • C.

      Fair Debt Collection Practices Act

    • D.

      Truth In Lending Act

    Correct Answer
    B. Fair Credit Reporting Act
    Explanation
    The Fair Credit Reporting Act protects the information collected by consumer reporting agencies. This act ensures that consumer reporting agencies maintain accurate and fair information about individuals and provides individuals with the right to access and dispute any inaccurate information. It also regulates the use of consumer credit information by lenders, employers, and other entities, to prevent discrimination and ensure the privacy and security of consumer data.

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  • 24. 

    Which is the best way to prevent delinquent claims?

    • A.

      Attach supporting medical documentation on claims

    • B.

      Enter all claims data in the in the practices suspense file

    • C.

      Submit closed claims to all third-party payers

    • D.

      Verify all health plan identification information on all patients

    Correct Answer
    D. Verify all health plan identification information on all patients
    Explanation
    Verifying all health plan identification information on all patients is the best way to prevent delinquent claims. By ensuring that the health plan identification information is accurate and up-to-date, healthcare providers can avoid claim denials and delays in reimbursement. This step helps to confirm that the patient is eligible for the services being provided and that the claims will be processed correctly by the third-party payers. It is an essential measure to prevent potential issues and ensure smooth claims processing.

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  • 25. 

    Which is a characteristic  of delinquent commercial claims awaiting payer reimbursement?

    • A.

      Delinquent claims are outsourced to a collection agency

    • B.

      The delinquent claims are resolved directly with the payer

    • C.

      The accounts receivable aging report was not submitted

    • D.

      The provided remittance notice was delayed by the payer

    Correct Answer
    A. Delinquent claims are outsourced to a collection agency

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 12, 2012
    Quiz Created by
    Phliproc
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