Question 1

If a patient writes "paid in full" on a check against an account that will not be paid in full with the check, the acceptance of the check indicates an acceptance of the "paid in full" remark.

Accepted Answer

Writing "paid in full" on a check does not automatically mean that the full amount has been paid, and thus the acceptance of the check does not necessarily indicate acceptance of the "paid in full" remark. The creditor may cross out the "paid in full" language and seek payment for the remaining balance owed.

Question 2

One person or one department should handle all billing questions.

Accepted Answer

It is more efficient and avoids confusion if one person or department is responsible for handling all billing questions.

Question 3

The Fair Credit Reporting Act states that a patient has 60 days from the date a statement is mailed to complain about an error.

Accepted Answer

The Fair Credit Reporting Act does not apply to medical billing statements, so there is no specified time limit for patients to report errors. However, healthcare providers are still required to investigate and correct any errors as needed.

Question 4

According to the FDCPA, debtors can never be contacted at work.

Accepted Answer

The FDCPA allows debt collectors to contact debtors at work, but only if the debtor has given permission for such communication. However, if the debtor requests that the collector not contact them at work, the collector must comply with the request.

Question 5

Standard policy should be to reduce fees of any patient who dies after receiving medical care.

Accepted Answer

While reducing fees for patients who die after receiving medical care may seem like a compassionate gesture, it is not a standard policy for healthcare providers. Healthcare facilities and providers have expenses that must be covered, regardless of the outcome of treatment. Instead, healthcare providers may offer compassionate care and support to the family members of a deceased patient, such as bereavement support services.

Question 6

A personal check is a guarantee of payment.

Accepted Answer

A personal check is not a guarantee of payment; it is a written order to a bank to pay the specified amount from the drawer's account, but payment depends on the availability of funds in that account.

Question 7

It is legal to offer patients a cash discount when the entire fee is paid at the time of service.

Accepted Answer

Offering patients a cash discount when the entire fee is paid at the time of service is legal, as long as the discount is not offered only to patients with insurance. This is because giving discounts to patients with insurance could be seen as an illegal kickback to incentivize patients to pay out of pocket and avoid going through their insurance.

Question 8

When a physician offers a discount, it must apply to the total bill, not just the portion that is paid by the patient.

Accepted Answer

If a physician offers a discount, it should apply to the total bill and not just the portion paid by the patient. This is to avoid potential violations of fraud and abuse laws, such as the Anti-Kickback Statute and the False Claims Act. The discount should be offered uniformly to all patients and not based on their insurance coverage or other protected factors.

Question 9

A patient has a $600 balance and agrees to a payment plan of $100 in six installments. If he or she skips the third installment and sends in $25 the following month, the physician can send the account to a collection agency.

Accepted Answer

The physician can send the account to a collection agency if the agreed-upon payment plan is not followed, as skipping an installment and underpaying the next constitutes a breach of the agreed payment terms.

Question 10

Refunds may be made by check on accounts in which payment was made by credit card.

Accepted Answer

Refunds for payments made by credit card are typically processed back to the same credit card to prevent fraud and money laundering, and to comply with credit card company policies.

Question 11

Under federal regulations, a list of the most common services the physician offers, including procedure code numbers with a description of each service and its price, must be posted in the office waiting room.

Accepted Answer

While physicians are required to provide patients with access to a list of their standard charges for the items and services they provide, there is no specific requirement to post this information in the waiting room. Instead, the information may be provided in other forms, such as on the provider's website or upon request by the patient.

Question 12

Most medical practices operate with a set of fees that must be applied to all patients in the practice.

Accepted Answer

Most medical practices have a set fee schedule that applies to all patients, regardless of their individual financial circumstances or medical needs. This is typically designed to ensure consistency and fairness in billing practices, as well as to help practices manage their finances and maintain stable revenue streams. However, some practices may offer financial assistance or alternative payment options to patients who are unable to pay their bills in full or on time.

Question 13

In most situations, both private insurers and the federal government ban waiving the copayment portion of the patient's fee.

Accepted Answer

Waiving the copayment portion of the patient's fee violates the terms of the insurance policy or government program and may be considered insurance fraud. Therefore, it is typically banned by both private insurers and the federal government.

Question 14

In a telephone collection call, the first 2 minutes will set the scene for your relationship with the patient.

Accepted Answer

The answer of In a telephone collection call, the first...

Question 15

In trying to collect an unpaid balance, a telephone interview is preferred to a personal interview.

Accepted Answer

A personal interview is generally preferred for collecting an unpaid balance because it allows for direct interaction, which can lead to a better understanding of the debtor's situation and potentially more effective negotiation.

Question 16

When a physician continues to treat a patient with an overdue account, the courts have viewed this as an extension of credit; therefore, patients who fall into this delinquent status should be referred elsewhere.

Accepted Answer

When a physician continues to treat a patient with an overdue account, the courts have viewed this as an extension of credit.

Question 17

You should not give patients the option of whether they would like to pay now or have a bill sent.

Accepted Answer

Patients should not be given the option of whether they would like to pay now or have a bill sent because it can lead to confusion and delays in payment. When patients are given the option to pay now, they may be more likely to procrastinate and forget to pay their bill. This can lead to late fees and other penalties. Additionally, when patients are given the option to have a bill sent, they may be more likely to lose the bill or forget to pay it. This can also lead to late fees and other penalties.

Question 18

The best and most effective collection statements include a handwritten note.

Accepted Answer

A handwritten note shows that extra care and attention was taken in the communication process, and can help to establish a personal connection with the debtor. This can increase the chances of a successful resolution and payment of the debt.

Question 19

A medical practice cannot refuse to let an established patient see the doctor because of a debt.

Accepted Answer

Refusing medical care to an established patient solely based on a debt is a violation of the patient's right to receive medical care. Medical practices may take steps to collect debts, but they cannot use medical care as leverage against a patient.

Question 20

A collection rate of 80-85% should be a goal for the practice administrator in charge of collections in the physician's office.

Accepted Answer

A collection rate of 80-85% is considered low for a medical practice. The goal should be a higher rate, typically above 90%, to ensure financial health and sustainability of the practice.

Quiz 10: Office and Insurance Collection Strategies