Deck 47: Billing and Collections

Question 1

When is the first bill usually sent to a patient?

A) The next time bills are prepared
B) Within a week of the office visit
C) When the patient calls to request a bill
D) At the next scheduled billing after insurance has paid

Answer 1

At the next scheduled billing after insurance has paid

Question 2

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?

A) Send a bill to Cathy's home address.
B) Bill the parent's insurance company.
C) Ask Cathy to pay at the time of the visit.
D) Try to collect the money from Cathy's parents.

Answer 2

Ask Cathy to pay at the time of the visit.

Question 3

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

A) Aging
B) Crediting
C) Recording
D) Ledger balancing

Answer 3

Aging

Question 4

Which of the following is NOT an advantage of using a computerized billing system?

A) Current patient bills can be created easily.
B) The office can create accurate account aging reports.
C) Credit agreements can be generated for any overdue account.
D) Claim messages can be automatically added to bills of overdue accounts.

Question 5

When is a patient account usually considered overdue?

A) 30 days after being billed
B) 60 days after being billed
C) 90 days after being billed
D) 120 days after being billed

Question 6

What is overdraft protection?

A) An increase in the maximum amount for which a check may be written
B) An agreement that the bank will transfer money between accounts as needed
C) An extra review to prevent errors in calculating the balance of a bank account
D) A delay in cashing any check written on an account without adequate funds to cover it

Question 7

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

A) Those for patients who have died
B) Those for minors who received treatment for STDs
C) Those for patients who have credit agreements with the office allowing time payments
D) All of the above
E) None of the above

Question 8

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

A) The patient's balance is zero.
B) The patient owes less than $100.
C) The patient's balance is a negative number.
D) The patient has received a discount for a cash payment at the time of the visit.

Question 9

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

A) Adjust the patient balance
B) Issue a refund in the form of a check
C) Leave the credit balance in place for at least 90 days
D) Contact the patient to determine how the patient wants to handle the credit balance

Question 10

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

A) Cycle billing
B) Monthly billing
C) Alphabetic billing
D) Balance due billing

Question 11

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

A) An office business card
B) One of the office claim messages
C) A sticker that says Please Call the Office
D) A copy of the Fair Debt Collection Act of 1966

Question 12

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?

A) If the outstanding balance is greater than $100.00
B) If the patient has not made a payment for 6 months
C) If the office really intends to send the account to a collection agency
D) If the intent is to scare the patient into paying the bill without following through

Question 13

What is the term used for the outstanding amount owed on a bill?

A) Balance due
B) Balance billing
C) Patient balance
D) Payment on account

Question 14

After what period does an account require additional collection activity?

A) 30 days
B) 60 days
C) 90 days
D) 120 days

Question 15

For which of the following do banks usually NOT charge an extra fee?

A) Not sufficient check (NSF check)
B) Use of overdraft protection
C) Stopping payment on a check
D) A refund check written to a patient

Question 16

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

A) 30 days
B) 60 days
C) 90 days
D) 120 days

Question 17

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

A) The party that attempts to cash the check only.
B) Most banks do not charge fees for NSF checks.
C) The owner of the account on whom the check is written only.
D) Both the owner of the account and the party that attempts to cash the check.

Question 18

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

A) The recipient of a check (payee) reports that it has been lost
B) A check has been returned to the office lacking a signature
C) The medical assistant makes an error writing a check and needs to write a new one
D) The medical assistant is afraid that there isn't enough money in the office account to cover an outstanding check

Question 19

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

A) Enter patient charges into the computer.
B) Process patient and insurance payments.
C) Print patient bills and send them to patients.
D) All of the above.
E) None of the above.

Question 20

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

A) As a payment
B) As a charge for service
C) As a debit adjustment that increases the patient's balance
D) As a credit adjustment that decreases the patient's balance

Question 21

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?

A) To address the envelope to her attention
B) To send the check to the collection agency
C) To write account in collection on the memo line of the check
D) To send 60% of the amount to the office and the other 40% to the collection agency

Question 22

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?

A) Clerk of the court
B) Collection agency representative
C) Medical assistant or other office staff member
D) The attorney that handles legal work for the practice

Question 23

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

A) The patient must have an outstanding balance owed to the office.
B) The office must have a signed written credit agreement with the patient.
C) The office will not be able to receive payment under any circumstances.
D) The office must have already turned the account over to a collection agency.

Question 24

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

A) The total number of payments allowed
B) The minimum amount of each payment
C) An interest rate based on the patient's payment history
D) The amount the patient will be allowed to pay over time

Question 25

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?

A) Fair Debt Collection Act
B) Fair Credit Reporting Act
C) Federal Truth in Lending Act
D) Equal Credit Opportunity Act

Question 26

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

A) The probate court
B) The spouse or next of kin
C) The patient's bank or financial institution
D) The executor or administrator named in the will

Question 27

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?

A) First Class
B) Registered Mail
C) Certified Mail with Return Receipt
D) First Class and insured for $100.00

Question 28

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?

A) Send the bill to collection anyway
B) Take the patient to small claims court
C) Ignore the request because too much time has gone by
D) Draw up a written credit agreement with the patient, stating the minimum amount due each month

Question 29

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

A) Call the individual at home before 7:00 am.
B) Threaten to tell the individual's boss that he or she owes the practice money.
C) Call the individual at work one time, so long as the reason for the call is not given to a third party.
D) Call the patient every day to remind him or her of a promise to send a payment at the end of the week.
E) All of the above.

Question 30

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

A) Bankruptcy laws
B) Fair Practices Act
C) Truth in Lending Act
D) Lenders Protective Act

Question 31

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

A) Post a payment labeled Collection Agency Payment in the amount of the check received.
B) Post a payment labeled Collection Agency Payment in the amount that the patient owes.
C) Post a credit adjustment labeled Reverse Collection in the amount that the patient owes.
D) Post a credit adjustment labeled Reverse Collection in the amount of the check received.

Question 32

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

A) Filed with the clerk of probate
B) Sent by Certified Mail to the family
C) Usually none
D) To the patient's address, headed "To the Estate of" and the patient's name

Question 33

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

A) The patient must have an outstanding balance owed to the office.
B) The office must have a signed written credit agreement with the patient.
C) The office will not be able to receive payment under any circumstances.
D) The office must have already turned the account over to a collection agency.

Question 34

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

A) $400.00
B) $600.00
C) $800.00
D) $1000.00

Question 35

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

A) Try to call the patient.
B) Try to send a letter by Certified Mail to the last known address.
C) Try to see if the patient has a new telephone number by calling information.
D) Call the person who is listed on the patient information form as the next of kin.
E) All of the above.

Question 36

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?

A) Accept the payment from the patient.
B) Inform the patient that the case has been referred to small claims court.
C) Make a deal with the patient to accept 50% of the balance due as payment in full.
D) Inform the patient that no creditor is allowed to collect a debt outside the bankruptcy process.

Question 37

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

A) A "hold" is placed on the account in the computer.
B) The account is moved from the patient accounts to a special accounts file.
C) The anticipated collection agency fee is subtracted from the account balance.
D) The balance on the account is changed to zero using a debit (negative) adjustment.

Question 38

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

A) The patient's account number
B) A specific date by which payment is required
C) The letter should be notarized by a notary public
D) A statement that the office may be forced to take action that will ruin the patient's credit rating

Question 39

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

A) Lawsuit for negligence resulting in a broken ankle
B) First arrest for driving under the influence of alcohol
C) Failure to pay two months' rent before moving out of an apartment
D) Dispute over a moving violation ticket received for an improper left turn

Question 40

If a patient whose account is in collection makes an appointment, what will the patient be told?

A) Charges for the new visit must be paid in full before the patient will be seen.
B) The patient must sign a written credit agreement before an appointment can be made.
C) The previous balance must be paid to the collection agency before the patient will be seen.
D) Only minor children will be seen by the office while the patient has an account in collection.

Question 41

It will probably cost less to bring a lawsuit against a patient in small claims court compared to a lawsuit in a regular court.

Question 42

The medical office can file a lawsuit in small claims court for an unpaid patient bill.

Question 43

A patient often has a credit balance when the patient is seen twice in the same month.

Question 44

If a patient's account is in collection, the medical office should tell the patient to find another physician and refuse any further appointments.

Question 45

Claim messages attached to patient bills often become more forceful each month that the account remains unpaid.

Question 46

The medical office may agree to treat a patient who has declared bankruptcy, but it will probably require the patient to pay in full for any new services at the time the services are provided.

Question 47

Even if a patient's account is being paid by capitation, a billing record is usually kept for that patient.

Question 48

A check returned for not sufficient funds (NSF) is an example of an overdraft.

Question 49

If a patient receives permission to make several payments on an overdue account, a written agreement is only required if the office plans to charge interest.

Question 50

If a patient files for bankruptcy, the medical office is always considered a secured creditor.