Medical Billing Training
Medical Billing Training
I. US Healthcare System
Not a universally accessible system:
o Government funded – Medicare and Medicaid
o Private funded
Americans are covered both by public and private health insurance, where
majority are covered by private insurances through their employers.
A consumer or patient pays an upfront premium to a health insurance
company for.
Patients:
o core of the healthcare system
o responsible for the financial aspect of healthcare
o pays insurance premiums and copayments
o decide which physician to see and choose where they will go for care
Providers
o Gatekeepers that give access to ancillary services that the patient may need,
admit to hospital and decide which medications will best help them
o Primary care physician are the first contact of the patient in the US healthcare
system
Payers
o These are the insurance companies: government and private funded
o Consumers pay premium to the payers in return for the insurance coverage
o They are important because the hold the money, make decision which drugs
and procedures to pay for and how much they will reimburse hospitals,
doctors and ancillary services.
Hospitals
o Offer both inpatient and outpatient care, pharmaceuticals and ancillary
services to the healthcare consumers
o Hospital bills for services are paid by the insurance companies.
Pharmaceutical companies
Provides medication to the health consumers
Costs are paid by insurance companies
Provider chooses which medications to prescribe
Hospital decides which medication to stock in their formularies
Regulatory organizations
Protect the rights and ensure the safety of the patient
Physicians and other healthcare providers must be licensed to practice by
their respective boards in each state they practice.
Joint Commission accreditations is required in order for the hospitals to
receive Medicare and Medicaid reimbursements
Federal Drug Administration: regulates the pharmaceutical corporations
Each major part of the body is identified by one or more root words. These words are
derived from Greek or Latin words that describe the body parts
*** copy of common medical test pp: 54**
A medical practice is a relatively small business that is owned and operated by one or more
practitioners. A practitioner opens a medical practice after completing 4 years of medical school
and 3 years of closely supervised training in a hospital, known as a residency.
After completing their residency, some practitioners join an existing medical practice as an
employee before opening their own medical practice. Others partner with fellow practitioners to
open a group medical practice.
owned and operated by a practitioner who is responsible for the healthcare of his/her patients and
for running the medical practice as a profitable business. The practitioner might provide family
care; focus on a specialty such as geriatrics; or provide a combination of family care and a
specialty.
owned and operated by two or more practitioners who are responsible for patient care. They
delegate the business aspects of the practice to an office manager whose job is to create a
structure for the medical practice to run efficiently and profitably
major advantage of working for a group medical practice is its structure and stability and
ability to focus on one area of the medical practice
major disadvantage of working for a group medical practice is the inflexibility for
support, training, and career advancement. Staff members are expected to perform their
job accurately and independently with little or no support.
major advantage of working for an ambulatory care center is the greater structure and
stability than is found in a group practice plus there is the opportunity for career
development and job transfer especially in centers that are part of a chain.
major disadvantage of working for an ambulatory care center is its inflexibility.
Operating decisions and procedures are typically set for the entire chain of centers by off-
site managers who are focused on the bottom line.
are modern health care facilities focused on providing same-day surgical care, including
diagnostic and preventive procedures.
Clinic
a specialized practice that can be owned and operated by a group of practitioners or by a large
healthcare organization such as a hospital. Practitioners who work at a clinic have the same
medical interests. Examples of clinics are baby wellness centers, sports injury clinics, women’s
health clinics, and rehabilitation facilities.
walk-in clinic that delivers ambulatory care and provides an alternative to relatively minor care
handled by traditional emergency room. Urgent care centers treat injuries and illnesses that
require immediate care but not emergency care.
Retail Clinic
A retail (or convenient) care clinic can be found in retail stores such as phar-macies and large
super stores. A retail care clinic provides care for minor ill-nesses and minor preventive care
such as flu shots. Non-physician practitioner providers, such as medical assistants, nurses, and
nurse practitioners (NPs), provide care.
Hospital
large healthcare facility that offers outpatient and inpatient care. Most hospitals offer the same
breadth of services, while some also offer spe-cialty care such as cardiac surgery, burns, and
major trauma care
V. Introduction to Procedural Coding
billing codes are used to pay for medical procedures, such as checkups by your
doctor, and medical services such as the ambulance ride to your hospital.
physician, the pathology laboratory, her surgeon, and the hospital need to get paid
for the patient’s care.
In order to be paid, healthcare providers must submit a claim form to the health
insurer.
i. Each claim is prepared by a medical insurance specialist and must state the
date the care was given, the code that represents the procedure or service
rendered, and the rate, which is the price charged by the healthcare
provider.
ii. Each procedure and service is identified by a unique code, which makes it
easy for healthcare providers to submit claims and for insurers to process
claims.
iii. These codes are defined in the Healthcare Common Procedure Coding
System (HCPCS).
Level I is referred to as the Current Procedural Terminology (CPT) and associates the
descriptions of procedures and services performed by physicians and other healthcare providers
with a unique five-digit numeric code. CPT is maintained by the American Medical Association
(AMA).
Current Procedural Terminology (CPT) is a medical code set that is used to report medical,
surgical, and diagnostic procedures and services to entities such as physicians, health insurance
companies and accreditation organizations.
Category 2: contains optional measures used to treat a patient such as tracking the patient’s blood
pressure, weight management, or tobacco intervention
Category 3: used for collecting information about those procedures and services rather than
for billing
ICD-10-CM
a system used by physicians and other healthcare providers to classify and code all
diagnoses, symptoms and procedures recorded in conjunction with hospital care in the
United States
What Is Insurance?
a contract (policy) in which an insurer indemnifies (covers) another against losses from specific
contingencies or perils.
insured, is at a potential financial loss from the possibility that certain events will occur.
insurer, agrees to cover this financial loss in exchange for ongoing payments of money called a
premium.
Managed care plans - have contracts with health care providers and medical facilities to provide
care for members at reduced costs.
Combined plans
Allow the insured to choose to receive care from approved or unapproved healthcare
providers.
Unlike HMOs, users of PPOs are required to pay for services at the time rather than on a prepaid,
fixed-rate basis and are reimbursed at a later date. Since the cost is arranged by the sponsor and healthcare
provider ahead of time, patients are able to know what they will be expected to pay.
Point of Service
requires the insured to choose a primary-care practitioner who is responsible for managing
the insured healthcare. The primary-care practitioner must be with the POS network of
healthcare providers.
liability protection of an auto insurance policy reimburses medical expenses of those injured in
an accident caused by the insured. Many auto insurance policies also offer personal injury
protection (PIP). PIP reimburses the insured for medical expenses regardless of who caused the
accident.
Workers’ Compensation
an insurance policy purchased by an employer who pays an employee’s medical expenses for
work-related injuries and diseases. The injury must have occurred as a result of employment.
Medicaid
Continue pp 54
References:
https://evidencenetwork.ca/backgrounder-making-sense-of-the-u-s-health-care-system-a-primer-
2/
https://vaden.stanford.edu/insurance/health-insurance-overview/how-us-health-insurance-works