Consumer healthcare spending continues to rise, not surprisingly due in part to the COVID-19 pandemic. National health spending projections for 2021-23 will continue to inch upward 5.4 percent per year, according to research compiled by the National Health Expenditures Accounts (NHE). Insurers have tightened the reins shifting more financial burden to their members. And with inflation, furloughs, unpaid family leave, and mounting medical and prescription costs, it's no surprise that family budgets are stretched thin.
This upward trend is likely to continue according to projections tracked by the NHE. These circumstances point to big collections problems when it comes to medical bills. Now, more than ever, protecting your practice's financial viability is critical.
Test your financial knowledge >>then scroll to the bottom to check your answers.
1. Health spending in the U.S. accounted for $4.1 trillion or $12,530 per person(1) according to:
- World Health Organization
- Centers for Medicare and Medicaid Services
- National Health Expenditures Accounts
- Gross Domestic Product
2. The annual rate of growth in health costs is expected to rise at an average annual rate of ____ through 2028. (2)
- 2.5%
- 5.4 %
- 15.3%
- 19.7%
3. The Kaiser Family Foundation reported that health spending per person in the U.S. was $11,946 in 2020, which was _____ more expensive than any other high-income nation. (3)
- $3000
- $4,000
- $8,000
- 10,000
4. The value of having a financial policy in your health care organization is:
- You are showing the patients that you are not only concerned with their personal health, but also their financial health.
- Physicians will know the amount to discuss with the patients.
- Financial policies are not a basic necessity for your health care organization.
- None of the above
5. The revenue cycle begins with which of the following steps?
- Stating the practice policies when the patient makes contact with your office
- Knowing the terms of the related insurance contracts
- Establishing an enforceable policy for patients without insurance
- All of the above
6. Which ratio indicates how quickly the average account is being paid?
- AR balance/collections
- Collections/Charges-Contractual adjustments
- Collections/Gross Charges
- None of the above
7. Which of the following is true about EHR documentation?
- Authenticity counts as much as completeness in supporting medical necessity and appropriateness of payment.
- Using templates that fill in a complete ROS with preselected content supports medical necessity.
- Each element of the review of systems and physical exam must be supported by the history of present illness and documented by the medical assistant.
- None of the above
8. When patient checks in, the front desk should always verify demographics. TRUE or FALSE
9. Patients do not need to be educated on what is covered and what is not considered “medically necessary” because the amount not paid can always be adjusted off the account. TRUE or FALSE
10. Each of the key indicators for measuring collection rates has statistical variations, dependent on the type of specialty, insurance contracts, geographical locations, and system capabilities. TRUE or FALSE
11. When working through your Accounts Receivable Report, you should try and collect on small balances first because it is easier. TRUE or FALSE
Our online class will explain how to establish policies and processes that support the administration and communication of financial responsibilities.
Answer Key: 1. c, 2. d , 3. b, 4. a, 5. d, 6. a, 7. a, 8. True, 9. False, 10. True, 11. False
(3) https://www.healthsystemtracker.org/chart-collection/health-spending-u-s-compare-countries-2/