AMCA BCSC key terms
AMCA BCSC · Get comfortable with the vocabulary.
- Current Procedural Terminology (CPT)
- Related: Healthcare Common Procedure Coding System (HCPCS), Evaluation and Management (E/M) Code
A standardized code set maintained by the American Medical Association that describes medical, surgical, and diagnostic services. Payers use these codes to process claims and determine reimbursement amounts.
- Healthcare Common Procedure Coding System (HCPCS)
- Related: Current Procedural Terminology (CPT), National Drug Code (NDC)
A two-level code set used for billing Medicare and other payers. Level I consists of CPT codes, while Level II covers products, supplies, and services not represented in CPT.
- International Classification of Diseases, 10th Revision (ICD-10)
- Related: Medical Necessity, Primary Diagnosis
The standardized system for reporting diagnoses and inpatient procedures. ICD-10-CM codes describe patient conditions and justify the medical necessity of services billed.
- Evaluation and Management (E/M) Code
- Related: Current Procedural Terminology (CPT), Modifier
A category of CPT codes used to report patient encounters such as office visits and hospital consultations. Selection depends on documented history, examination, and medical decision-making or time.
- Modifier
- Related: Evaluation and Management (E/M) Code, Bundling
A two-character code appended to a procedure code to clarify or alter how a service is reported. Modifiers explain circumstances such as a bilateral procedure, multiple providers, or a discontinued service.
- Place of Service (POS) Code
- Related: Claim Form CMS-1500, Reimbursement
A two-digit code on a claim identifying where a service was furnished, such as an office, hospital, or patient home. The setting often changes the reimbursement rate for the same procedure.
- Medical Necessity
- Related: International Classification of Diseases, 10th Revision (ICD-10), Advance Beneficiary Notice (ABN)
The determination that a service is reasonable and required to diagnose or treat a patient's condition. Payers deny claims when documentation does not support that the care was medically necessary.
- Explanation of Benefits (EOB)
- Related: Remittance Advice (RA), Coinsurance
A statement from an insurer summarizing how a claim was processed, including allowed amounts, payments, and patient responsibility. It is sent to the patient and often to the provider as a remittance.
- Remittance Advice (RA)
- Related: Explanation of Benefits (EOB), Accounts Receivable (A/R)
An electronic or paper document from a payer that accompanies payment and explains each claim's adjudication. It lists paid, denied, and adjusted amounts and supports posting payments to patient accounts.
- Claim Form CMS-1500
- Related: Place of Service (POS) Code, Clean Claim
The standard paper claim form used by non-institutional providers to bill Medicare and other insurers. It captures patient, provider, diagnosis, and procedure information in numbered fields.
- Clean Claim
- Related: Claim Form CMS-1500, Claim Denial
A claim submitted with all required information complete and accurate so that a payer can adjudicate it without requesting additional data. Clean claims are typically paid within prompt-pay timeframes.
- Claim Denial
- Related: Appeal, Clean Claim
A payer's refusal to pay a claim, often due to missing information, ineligibility, or lack of medical necessity. Denials must be tracked, corrected, and appealed within payer deadlines.
- Appeal
- Related: Claim Denial, Medical Necessity
A formal request asking a payer to reconsider a denied or underpaid claim. Appeals usually require supporting documentation and must be filed within the payer's stated timeframe.
- Copayment
- Related: Coinsurance, Deductible
A fixed dollar amount a patient pays at the time of service, such as a set fee for an office visit. The insurer pays the remaining allowed amount according to the plan.
- Coinsurance
- Related: Copayment, Deductible
The percentage of allowed charges a patient is responsible for after meeting the deductible. For example, a 20 percent coinsurance means the patient pays that share of the cost.
- Deductible
- Related: Coinsurance, Copayment
The amount a patient must pay out of pocket for covered services before the insurance plan begins to pay. Deductibles typically reset each plan year.
- Allowed Amount
- Related: Reimbursement, Fee Schedule
The maximum amount a payer will recognize for a covered service under its contract or fee schedule. Patient cost-sharing and insurer payment are calculated from this figure.
- Fee Schedule
- Related: Allowed Amount, Reimbursement
A list of predetermined payment amounts a payer assigns to specific procedure codes. Providers use it to estimate expected reimbursement and to negotiate contracts.
- Reimbursement
- Related: Allowed Amount, Accounts Receivable (A/R)
The payment a provider receives for services rendered, usually from an insurer or patient. It is generally based on contracted rates rather than the provider's full charge.
- Accounts Receivable (A/R)
- Related: Remittance Advice (RA), Claim Denial
Money owed to a practice for services already delivered but not yet paid. Managing A/R involves tracking aging claims and following up on outstanding balances.
- Bundling
- Related: Modifier, Unbundling
The payer practice of combining component services into a single payment rather than paying each separately. Bundling rules affect how procedures should be coded and modified.
- Unbundling
- Related: Bundling, Upcoding
Reporting components of a procedure as separate codes when they should be billed together. This can be considered improper billing and may trigger claim denials or compliance review.
- Upcoding
- Related: Unbundling, False Claims Act
Assigning a higher-paying code than the documentation supports. It is a form of fraudulent billing and can result in audits, penalties, and exclusion from federal programs.
- Health Insurance Portability and Accountability Act (HIPAA)
- Related: Protected Health Information (PHI), Minimum Necessary Standard
A federal law that protects the privacy and security of patient health information and sets standards for electronic transactions. Covered entities must safeguard protected health information and follow breach notification rules.
- Protected Health Information (PHI)
- Related: Health Insurance Portability and Accountability Act (HIPAA), Minimum Necessary Standard
Individually identifiable health information held or transmitted by a covered entity. It includes data such as names, dates, diagnoses, and account numbers linked to a patient.
- Minimum Necessary Standard
- Related: Protected Health Information (PHI), Health Insurance Portability and Accountability Act (HIPAA)
A HIPAA principle requiring that only the least amount of protected health information needed for a purpose be used or disclosed. It applies to most routine uses and disclosures.
- Advance Beneficiary Notice (ABN)
- Related: Medical Necessity, Claim Denial
A written notice a provider gives a Medicare patient before a service that may not be covered. Signing it shifts financial responsibility to the patient if Medicare denies payment.
- False Claims Act
- Related: Upcoding, Unbundling
A federal statute that imposes liability on individuals or entities that knowingly submit false or fraudulent claims to government programs. Penalties include fines and treble damages.
- National Provider Identifier (NPI)
- Related: Claim Form CMS-1500, Taxonomy Code
A unique ten-digit identification number assigned to healthcare providers for use in standard electronic transactions. It replaces legacy identifiers and is required on most claims.
- Taxonomy Code
- Related: National Provider Identifier (NPI)
A ten-character alphanumeric code that identifies a provider's specialty and classification. It is registered with the NPI and helps payers route claims correctly.
- National Drug Code (NDC)
- Related: Healthcare Common Procedure Coding System (HCPCS)
A unique identifier assigned to medications and reported on claims when drugs are administered. It identifies the labeler, product, and package size of the drug.
- Primary Diagnosis
- Related: International Classification of Diseases, 10th Revision (ICD-10), Medical Necessity
The condition chiefly responsible for the patient encounter and listed first on a claim. It supports the medical necessity of the services reported.
- Anatomical Position
- Related: Proximal, Distal
The standard reference posture in which a person stands upright facing forward with arms at the sides and palms facing forward. Body directions and locations are described relative to this position.
- Proximal
- Related: Distal, Anatomical Position
A directional term meaning closer to the point of attachment or to the trunk of the body. For example, the shoulder is proximal to the elbow.
- Distal
- Related: Proximal, Anatomical Position
A directional term meaning farther from the point of attachment or from the trunk of the body. For example, the fingers are distal to the wrist.
- Suffix
- Related: Prefix, Root Word
A word part attached to the end of a medical term that alters its meaning, often indicating a condition, procedure, or process. For example, -itis means inflammation.
- Prefix
- Related: Suffix, Root Word
A word part attached to the beginning of a medical term that modifies its meaning, often indicating location, number, or time. For example, hyper- means above or excessive.
- Root Word
- Related: Prefix, Suffix
The core part of a medical term that carries its fundamental meaning, often referring to a body part or system. Combining vowels are frequently added to connect roots to suffixes.