AAHAM CRCS Exam STUDY MANUAL CH 5 Credits and Collections Solved 100%

Charity Care - Answer service provided that is never expected to result in cash flow. Charity Care results from a provider's policy to provide healthcare services free of charge or at a reduced cost to individuals who meet certain financial criteria. Indigent - Answer an individual who has no means of paying for medical services or treatments and is not eligible for benefits under Medicaid or any other public assistance program bad Debt - Answer an uncollectible account resulting from the extension of credit. examples of bad debt include patients who default from payment arrangements, skip, file bankruptcy without assets, or have insolvent estates, and guarantors who refuse to pay. statute of limitations - Answer the amount of time in which a claim must be collected before it is deemed paid or satisfied. No legal proceedings can be initiated after the statue of limitations expires. How are periods of statute limitations determined - Answer vary from state to state. Limitation periods are usually: LESS for open-end accounts or oral agreements GREATER for notes or written agreements GREATEST for judgements. When Can the statute of limitations be extended? - Answer May be extended under the following circumstances: -Obtaining a written 'promise to pay', -or a partial payment on the principal account, -reducing the account to judgement immediately, -executing a new contract with the guarantor whereby the creditor gives new consideration in exchange for a promise to pay. What must a written collection policy include? - Answer Admission policy, -Minimum Acceptable payments, -follow up policy including the title/role of the person -public relations policy, -charity care requirements and protocols, -discount policy, -practice of charging interest, -contract amount implications, -age when an account is considered uncollectible and prepared for a bad-debt write-off, -determination/verification of responsible party, -process for handling errors/complaints Self-pay options - Answer can include: cash or check, credit cards, HSA, credit union funds, cash from sale of assets, loan programs, money transfers Money orders Advantages to credit card payment - Answer Immediate payment, can accept over phone, can get prior auth to charge after insurance pays. disadvantages to credit card payment - Answer additional costs to use cc company, must follow credit card industry regulations, potential pr problems extended payment plans - Answer if other self-payment options are not viable, the provider can offer extended payment plan to boost cash flow: monthly installments, periodic payments, finance charges, and other pmt plan arrangements.