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A

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accounting cycle  the flow of financial transactions in a business
accounts receivable (AR)  monies that are flowing into a business
adjudication  series of steps that determine whether a claim should be paid
adjustments  changes to patients’ accounts that alter the amount charged or paid
administrative safeguards  administrative policies and procedures designed to protect electronic health information outlined by the HIPAA Security Rule
aging report  a report that lists the amount of money owed to the practice, organized by the amount of time the money has been owed
audit/edit report  a report from a clearinghouse that lists errors to be corrected before a claim can be submitted to the payer
audit trail  a report that traces who has accessed electronic information, when information was accessed, and whether any information was changed
autoposting  an automated process for entering information on a remittance advice (RA) into a computer
   

 

 

B

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backup data  a copy of data files made at a specific point in time that can be used to restore data to the system
billing cycle  regular schedule of sending statements to patients
   

 

 

C

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capitated plan  an insurance plan in which payments are made to a physician by a managed care company for a patient who selects the physician as his or her primary care provider, regardless of whether the patient visits the physician
capitation  advance payment to a provider that covers each plan member’s health care services for a certain period of time
capitation payments  payments made to physicians on a regular basis (such as monthly) for providing services to patients in a managed care insurance plan
case  a grouping of transactions for visits to a physician’s office, organized around a condition
charges  amounts a provider bills for the services performed
chart  a folder that contains all records pertaining to a patient
chart number  a unique number that identifies a patient
clearinghouse  a service company that receives electronic or paper claims from the provider, checks and prepares them for processing, and transmits them in HIPAA-compliant format to the correct carriers
coding  the process of assigning standardized codes to diagnoses and procedures.
coinsurance  part of charges that an insured person must pay for health care services after payment of the deductible amount
collection agency  an outside firm hired to collect on delinquent accounts
collection list  a tool for tracking activities that needs to be completed as part of the collections process
Collection Tracer report  a tool for keeping track of collection letters that were sent
consumer-driven health plan (CDHP)  a type of managed care in which a high-deductible/lowpremium insurance plan is combined with a pretax savings account to cover out-of-pocket medical expenses, up to the deductible limit
copayment  A small fixed fee paid by the patient at the time of an office visit.
cycle billing  a type of billing in which patients are divided into groups and statement printing and mailing is staggered throughout the month
   

 

 

D

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database  a collection of related bits of information
day sheet  a report that provides information on practice activities for a twenty-four-hour period
diagnosis  physician’s opinion of the nature of the patient’s illness or injury
diagnosis code  a standardized value that represents a patient’s illness, signs, and symptoms
   

 

 

E

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electronic data interchange (EDI)  the exchange of routine business transactions from one computer to another using publicly available communications protocols
electronic funds transfer (EFT)  a system that transfers money electronically
electronic medical record (EMR)  electronic collection and management of health data
electronic prescribing  the use of computers and handheld devices to write and transmit prescriptions to a pharmacy in a secure digital format
electronic remittance advice (ERA)  an electronic document that lists patients, dates of service, charges, and the amount paid or denied by the insurance carrier
encounter form  a list of the procedures and charges for a patient’s visit
established patient  a patient who has been seen by a provider in the practice in the same specialty within three years
explanation of benefits (EOB)  paper document from a payer that shows how the amount of a benefit was determined
   

 

 

F

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fee-for-service  health plan that repays the policyholder for covered medical expenses
fee schedule  a document that specifies the amount the provider bills for provided services
filter  a condition that data must meet to be selected
   

 

 

G

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guarantor  an individual who is not a patient of the practice, but who is the insurance policyholder for a patient of the practice
   

 

 

H

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health maintenance organization (HMO)  a managed health care system in which providers agree to offer health care to the organization’s members for fixed periodic payments from the plan
health plan  a plan, program, or organization that provides health benefits
HIPAA (Health Insurance Portability and Accountability Act of 1996)  federal act that set forth guidelines for standardizing the electronic data interchange of administrative and financial transactions, exposing fraud and abuse in government programs, and protecting the security and privacy of health information.
HIPAA Electronic Transaction and Code Sets standards  regulations requiring electronic transactions such as claim transmission to use standardized formats
HIPAA Privacy Rule  regulations for protecting individually identifiable information about a patient’s past, present, or future physical and mental health and payment for health care that is created or received by a health care provider
HIPAA Security Rule  regulations outlining the minimum administrative, technical, and physical safeguards required to prevent unauthorized access to protected health care information
   

 

 

I

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information technology (IT)  development, management, and support of computer-based hardware/software systems
insurance aging report  a report that lists how long a payer has taken to respond to insurance claims
   

 

 

K

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knowledge base  a collection of up-to-date technical information
   

 

 

M

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managed care  a type of insurance in which the carrier is responsible for both the financing and the delivery of health care
medical coder  a person who analyzes and codes patient diagnoses, procedures, and symptoms
medical necessity  treatment provided by a physician to a patient for the purpose of preventing, diagnosing, or treating an illness, injury, or its symptoms in a manner that is appropriate and provided in accordance with generally accepted standards of medical practice
MMDDCCYY format  a specific way in which dates must be keyed, in which “MM” stands for the month, “DD” stands for the day, “CC” represents the century, and “YY” stands for the year
modifier  a two-digit character that is appended to a CPT code to report special circumstances involved with a procedure or service
MultiLink codes  groups of procedure code entries that relate to a single activity
   

 

 

N

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National Provider Identifier (NPI)  a standard identifier for all health care providers consisting of ten numbers
navigator buttons  buttons that simplify the task of moving from one entry to another
new patient  a patient who has not received services from the same provider or a provider of the same specialty within the same practice for a period of three years
   

 

 

O

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Office Hours break  a block of time when a physician is unavailable for appointments with patients
Office Hours schedule  a listing of time slots for a particular day for a specific provider
once-a-month billing  a type of billing in which statements are mailed to all patients at the same time each month
   

 

 

P

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packing data  the deletion of vacant slots from the database
patient aging report  a report that lists a patient’s balance by age, date and amount of the last payment, and telephone number
patient day sheet  a summary of patient activity on a given day
patient information form  form that includes a patient’s personal, employment, and insurance data needed to complete an insurance claim
patient ledger  a report that lists the financial activity in each patient’s account, including charges, payments, and adjustments
patient statements  a list of the amount of money a patient owes, organized by the amount of time the money has been owed, the procedures performed, and the dates the procedures were performed
payer  private or government organization that insures or pays for health care on the behalf of beneficiaries
payment day sheet  a report that lists all payments received on a particular day, organized by provider
payment plan  an agreement between a patient and a practice in which the patient agrees to make regular monthly payments over a specified period of time
payment schedule  a document that specifies the amount the payer agrees to pay the provider for a service, based on a contracted rate of reimbursement
payments  monies received from patients and insurance carriers
physical safeguards  mechanisms required to protect electronic systems, equipment, and data from threats, environmental hazards, and unauthorized intrusion
policyholder  a person who buys an insurance plan; the insured
practice analysis report  a report that analyzes the revenue of a practice for a specified period of time, usually a month or a year
practice management program (PMP)  a software program that automates many of the administrative and financial tasks required to run a medical practice
preferred provider organization (PPO)  managed care network of health care providers who agree to perform services for plan members at discounted fees
premium  the periodic amount of money the insured pays to a health plan for insurance coverage
primary insurance carrier  the first carrier to whom claims are submitted
procedure  medical treatment provided by a physician or other health care provider
procedure code  a code that identifies a medical service
procedure day sheet  a report that lists all the procedures performed on a particular day, in numerical order
prompt payment laws  state laws that mandate a time period within which clean claims must be paid; if they are not, financial penalties are levied against the payer
protected health information (PHI)  information about a patient’s past, present, or future physical or mental health or payment for health care that can be used to identify the person
purging data  the process of deleting files of patients who are no longer seen by a provider in a practice
   

 

 

R

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rebuilding indexes  a process that checks and verifies data and corrects any internal problems with the data
recalculating balances  the process of updating balances to reflect the most recent changes made to the data
record of treatment and progress  a physician’s notes about a patient’s condition and diagnosis
referring provider  a physician who recommends that a patient see a specific other physician
remainder statements  statements that list only those charges that are not paid in full after all insurance carrier payments have been received
remittance advice (RA)  an explanation of benefits transmitted electronically by a payer to a provider
restoring data  the process of retrieving data from backup storage devices
   

 

 

S

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sponsor  in TRICARE, the active-duty service member
standard statements  statements that show all charges regardless of whether the insurance has paid on the transactions
statement  a list of all services performed for a patient, along with the charges for each service
   

 

 

T

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technical safeguards  automated processes used to protect data and control access to data
tickler  a reminder to follow-up on an account
   

 

 

U

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uncollectible account  an account that does not respond to collection efforts and is written off the practice’s expected accounts receivable
   

 

 

W

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walkout statement  a document listing charges and payments that is given to a patient after an office visit
   

 

 

X

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X12-837 Health Care Claim (837P)  HIPAA standard format for electronic transmission of a professional claim from a provider to a health plan







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