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Chapter 18 Medical Billing & Reimbursement Essentials

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Term
Definition
adjudicate   To settle or determine judicially.  
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audit   A process completed before claims submission in which claims are examined for accuracy and completeness.  
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capitation   A payment arrangement for healthcare providers. The provider is paid a set amount for each enrolled person assigned to him or her.  
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claims clearinghouse   An organization that accepts the claim data from the provider, reformats the data to meet specifications outlined by the insurance plan, and submits the claim.  
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claim scrubbers   Software that finds commom billing errors before the claim is sent to the insurance company.  
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CMS-1500 Health Insurance Claim Form (CMS-1500)   The standard insurance claim form used for all government and most commercial insurance companies.  
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copayment (copay)   A set dollar amount that the patient must pay for each office visit.  
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eligibility   Meeting the stipulated reqirements to participate in the healthcare plan.  
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endoscopy   Nonsurgical procedure that uses an endoscope to view inside the body.  
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explanation of benefits (EOB)   A document sent by the insurance company to the provider and the patient explaining the allowed charge amount, the amount reimbursed for sevices, and the patient's financial responsibilities.  
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medical necessity   Services or supplies (CPT and HCPCS codes) used to treat the patient's diagnosis (ICD codes) that meet the accepted standard of medical practice.  
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National Provider Identifier (NPI)   An identifier assigned by the Centers for Medicare and Medicaid Services (CMS) that classifies the healthcare provider by license and medical specialties.  
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precertification   The process of determining if a procedure or service is covered by the insurance plan and what the reimbursement is for that procedure or service.  
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provider Web portal   A secure online website that gives contracted providers a single point of access to insurance companies.  
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release of information   A form completed by the patient that authorizes the medical office to release medical records to the insirance company for health insurance reimbursement.  
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