Medical Reimbursement: A Contextualized Method

Author(s): Julie Ledbetter

Edition: 5

Copyright: 2023

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Medical Reimbursement: A Contextualized Method helps students navigate through the ins and outs of medical billing. An understanding of medical insurance and related terms is essential to the medical billing process. Healthcare is very expensive for a variety of reasons and, to remain profitable, medical providers must manage their “business” with the help of qualified employees who understand insurance benefits and the responsibility of reimbursement. Simply having medical insurance coverage does not necessarily mean that insurance will pay for all, or even part, of healthcare expenses. Some individuals by their own choice or by unforeseen circumstances, do not have insurance and are considered to be self-insured (or self-pay patients) and are, therefore, responsible for the entire cost of their own healthcare expenses.

CHAPTER 1: INTRODUCTION TO MEDICAL INSURANCE 
Health Insurance History 
Types of Payers 
Managed Care 
Health Maintenance Organizations 
Preferred Provider Organizations
Consumer-Driven Health Plans 
Government Payers 
Medicare 
Medicaid 
Tricare 
ChampVA 
Workers’ Compensation 

CHAPTER 2: LAWS AND REGULATORY REQUIREMENTS 
Health Insurance Portability and Accountability Act 
Federal False Claims Act 
Civil Monetary Penalties Law
Patient Protection and Affordable Care Act 
No Surprises Billing Act 

CHAPTER 3: DOCUMENTING MEDICAL CARE 
Patient Encounters 
Telehealth Encounters 
Preauthorization of Service or Procedure 
Medical Coding 
Procedures and Services (CPT) Coding 
Guidelines for CPT coding 
Evaluation and Management Codes 
Diagnoses Coding 
Guidelines for ICD-10-CM coding 
Diagnosis-Related Groups 
Procedure 3-1 Patient Encounters 
Procedure 3-2 Completing a Preauthorization 
Procedure 3-3 Completing a Precertification 
Procedure 3-4 Utilizing Medical Necessity Guidelines 

CHAPTER 4: PROFESSIONAL FEES AND REIMBURSEMENT 
Practice Fee Schedules 
Payer Reimbursement 
Resource-based Relative Value Scale 
Capitation 
Discounted Fee-for-Service 
Transformation of Health care Reimbursement 
Procedure 4-1 Creating a Fee Schedule 

CHAPTER 5: PRIVATE PAYERS 
Group Health Plans 
Managed Care Plans 
Procedure 5-1 Interpreting Insurance Information and Verify Elibility for Services 

CHAPTER 6: THE HEALTH INSURANCE CLAIM FORM 
CMS-1500 Claim Form 
Primary Claims 
Secondary Payers 
Tracking Unpaid Claims
Procedures 6-1, 6-2, 6-3, 6-4 Preparing Primary CMS-1500 Claims 
Procedure 6-5 Preparing Secondary CMS-1500 Claim 

CHAPTER 7: GOVERNMENT PAYERS AND WORKERS’ COMPENSATION
Medicare 
Medicaid 
Workers’ Compensation
Tricare 
CHAMPVA 
Procedure 7-1 Preparing Workers’ Compensation CMS-1500 Claim 
Procedure 7-2 Preparing Medicare CMS-1500 Claim 

CHAPTER 8: INTRODUCTION TO BOOKKEEPING 
Procedure 8-1 Posting Charges to Ledgers 

CHAPTER 9: REIMBURSEMENT FOR HEALTH CARE SERVICES 
Posting Insurance Payments 
Insurance Math Guidelines 
Procedure 9-1 Posting Payments to Day Sheet 

CHAPTER 10: ACCOUNT BALANCES AND GUARANTOR RESPONSIBILITY 
Patient Statements 
Precautions for Accepting Payments 
Procedure 10-1 Creating Patient Statements 
Procedure 10-2 Assist a Patient With an EOB 

CHAPTER 11: DELINQUENT ACCOUNTS, COLLECTIONS, AND REFUNDS 
Delinquent Accounts
Collection Agency Payments
Nonsufficient Funds Payments 
Refunds 
Procedure 11-1 Posting Refunds and Delinquent Transactions 

CHAPTER 12: BANKING SERVICES 
Accounts Receivable 
Accounts Payable 
Procedure 12-1 Posting to the Disbursement Journal 
Procedure 12-2 Completing a Deposit Slip 

CHAPTER 13: RECONCILIATION OF ACCOUNTS 
Procedure 13-1 Reconciling a Bank Statement 
Procedure 13-2 Posting Transactions and Reconciling a Day Sheet 
Physicians Healthcare Services 
Participating Provider Fee Schedule 
Procedure 13-2 

CHAPTER 14: MISCELLANEOUS PRACTICE EXPENSES 
Petty Cash 
Procedure 14-1 Completing Petty Cash Vouchers 
Procedure 14-2 Completing Petty Cash Report 
Objective: Prepare an Accurate Petty Cash Report 
Procedure 14-3 Replenishing Petty Cash 

CHAPTER 15: PAYROLL 
Payroll Responsibilities 
Payroll Processing 
Procedure 15-1 Calculating Payroll

Julie Ledbetter

New Edition Now Available!

Medical Reimbursement: A Contextualized Method helps students navigate through the ins and outs of medical billing. An understanding of medical insurance and related terms is essential to the medical billing process. Healthcare is very expensive for a variety of reasons and, to remain profitable, medical providers must manage their “business” with the help of qualified employees who understand insurance benefits and the responsibility of reimbursement. Simply having medical insurance coverage does not necessarily mean that insurance will pay for all, or even part, of healthcare expenses. Some individuals by their own choice or by unforeseen circumstances, do not have insurance and are considered to be self-insured (or self-pay patients) and are, therefore, responsible for the entire cost of their own healthcare expenses.

CHAPTER 1: INTRODUCTION TO MEDICAL INSURANCE 
Health Insurance History 
Types of Payers 
Managed Care 
Health Maintenance Organizations 
Preferred Provider Organizations
Consumer-Driven Health Plans 
Government Payers 
Medicare 
Medicaid 
Tricare 
ChampVA 
Workers’ Compensation 

CHAPTER 2: LAWS AND REGULATORY REQUIREMENTS 
Health Insurance Portability and Accountability Act 
Federal False Claims Act 
Civil Monetary Penalties Law
Patient Protection and Affordable Care Act 
No Surprises Billing Act 

CHAPTER 3: DOCUMENTING MEDICAL CARE 
Patient Encounters 
Telehealth Encounters 
Preauthorization of Service or Procedure 
Medical Coding 
Procedures and Services (CPT) Coding 
Guidelines for CPT coding 
Evaluation and Management Codes 
Diagnoses Coding 
Guidelines for ICD-10-CM coding 
Diagnosis-Related Groups 
Procedure 3-1 Patient Encounters 
Procedure 3-2 Completing a Preauthorization 
Procedure 3-3 Completing a Precertification 
Procedure 3-4 Utilizing Medical Necessity Guidelines 

CHAPTER 4: PROFESSIONAL FEES AND REIMBURSEMENT 
Practice Fee Schedules 
Payer Reimbursement 
Resource-based Relative Value Scale 
Capitation 
Discounted Fee-for-Service 
Transformation of Health care Reimbursement 
Procedure 4-1 Creating a Fee Schedule 

CHAPTER 5: PRIVATE PAYERS 
Group Health Plans 
Managed Care Plans 
Procedure 5-1 Interpreting Insurance Information and Verify Elibility for Services 

CHAPTER 6: THE HEALTH INSURANCE CLAIM FORM 
CMS-1500 Claim Form 
Primary Claims 
Secondary Payers 
Tracking Unpaid Claims
Procedures 6-1, 6-2, 6-3, 6-4 Preparing Primary CMS-1500 Claims 
Procedure 6-5 Preparing Secondary CMS-1500 Claim 

CHAPTER 7: GOVERNMENT PAYERS AND WORKERS’ COMPENSATION
Medicare 
Medicaid 
Workers’ Compensation
Tricare 
CHAMPVA 
Procedure 7-1 Preparing Workers’ Compensation CMS-1500 Claim 
Procedure 7-2 Preparing Medicare CMS-1500 Claim 

CHAPTER 8: INTRODUCTION TO BOOKKEEPING 
Procedure 8-1 Posting Charges to Ledgers 

CHAPTER 9: REIMBURSEMENT FOR HEALTH CARE SERVICES 
Posting Insurance Payments 
Insurance Math Guidelines 
Procedure 9-1 Posting Payments to Day Sheet 

CHAPTER 10: ACCOUNT BALANCES AND GUARANTOR RESPONSIBILITY 
Patient Statements 
Precautions for Accepting Payments 
Procedure 10-1 Creating Patient Statements 
Procedure 10-2 Assist a Patient With an EOB 

CHAPTER 11: DELINQUENT ACCOUNTS, COLLECTIONS, AND REFUNDS 
Delinquent Accounts
Collection Agency Payments
Nonsufficient Funds Payments 
Refunds 
Procedure 11-1 Posting Refunds and Delinquent Transactions 

CHAPTER 12: BANKING SERVICES 
Accounts Receivable 
Accounts Payable 
Procedure 12-1 Posting to the Disbursement Journal 
Procedure 12-2 Completing a Deposit Slip 

CHAPTER 13: RECONCILIATION OF ACCOUNTS 
Procedure 13-1 Reconciling a Bank Statement 
Procedure 13-2 Posting Transactions and Reconciling a Day Sheet 
Physicians Healthcare Services 
Participating Provider Fee Schedule 
Procedure 13-2 

CHAPTER 14: MISCELLANEOUS PRACTICE EXPENSES 
Petty Cash 
Procedure 14-1 Completing Petty Cash Vouchers 
Procedure 14-2 Completing Petty Cash Report 
Objective: Prepare an Accurate Petty Cash Report 
Procedure 14-3 Replenishing Petty Cash 

CHAPTER 15: PAYROLL 
Payroll Responsibilities 
Payroll Processing 
Procedure 15-1 Calculating Payroll

Julie Ledbetter