Healthcare Revenue Cycle Management, Exams of Finance

Download Healthcare Revenue Cycle Management and more Exams Finance in PDF only on Docsity! CRCR Practice 141 Questions and multiple choice Answers 2024. The 501(r) regulations require not-for-profit providers 501(c) (3) to do which of the following activities? A. Complete a community needs assessment and develop a discount program for patient balances after insurance payment. B. Pursue extraordinary collection activities with all patients eligible for financial assistance. C. Implement a financial assistance program for uninsured and underinsured patients. D. Discount all charges to self-pay patients to an amount generally billed to all other patients. - ✔ A. Complete a community needs assessment and develop a discount program for patient balances after insurance payment The accurate capture of charges remains critically important because: A. Of the potential of fraud and abuse charges from erroneous billing. B. Charges remain one of the few consistent indicators available to monitor resource use. C. Charges are means of measuring physician productivity. D. Charges provide the data used in activity based costing. - ✔ B. Charges remain one of the few consistent indicators available to monitor resource use The ACO investment model will test the use of pre-paid shared savings to: A. Invest in treatment protocols that reduce costs to Medicare B. Attract physicians to participate in the ACO payment system. C. Raise quality ratings in designated hospitals. D. Encourage new ACOs to form in rural and underserved areas. - ✔ D. Encourage new ACOs to form in rural and underserved areas Across all care settings, if a patient consents to a financial discussion during a medical encounter to expedite discharge, the HFMA best practice is to: A. Have a patient financial responsibilities kit ready for the patient, containing all of the required registration forms and instructions. B. Make sure that the attending staff can answer questions and assist in obtaining required patient financial data. C. Support that choice, providing that the discussion does not interfere with patient care or disrupt patient flow. D. Decline such request as finance discussions can disrupt patient care and patient flow. - ✔ C. Support that choice, providing that the discussion does not interfere with patient care or disrupt patient flow Activities completed when the scheduled, pre-registered patient arrives for service includes: A. Verifying insurance, activating the record and directing the patient to the service area. B. Scanning the driver's license or other phot identification and directing the patient to the financial counselor. C. Activating the record, obtaining signatures and finalizing financial issues. D. Registering the patient and directing the patient to the service area. - ✔ C. Activating the record, obtaining signatures and The activity which results in the accurate recording of patient bed and level of care assessment, patient transfer and patient discharge status on a real-time basis is known as: A. Utilization review B. Case Management C. Census Management D. Patient through-put - ✔ A. Utilization review or B. Case Management An advantage of a pre-registration program is: A. The markets value of such a program B. The ability to eliminate no-show appointments. C. The opportunity to reduce processing times at the time of service. D. The opportunity to reduce corporate compliance failures within the registration process. - ✔ C. The opportunity to reduce processing times at the time of service. B. PPO C. MSO D. GPO - ✔ A. HMO Any provider that has filed a timely cost report may appeal an adverse final decision received from the Medicare Administrative Contractor (MAC). This appeal may be filed with: A. The Provider Reimbursement Review Board B. The Department of Health and Human Services Provider Relations Division C. A court appointed federal mediator D. The Office of the Inspector General - ✔ A. The Provider Reimbursement Review Board Applying the contracted payment methodology to the total charges yields: A. An estimated price B. An anticipated health plan payment C. A price justified revenue accrual D. A pricing agreement - ✔ A. An estimated price Appropriate training for the patient financial counselling staff must cover all of the following EXCEPT: A. Patient financial communications best practices specific to staff role B. Financial assistance policies C. Documenting the conversation in the medical record D. Available patient financing options - ✔ C. Documenting the conversation in the medical record The basis for qualification in Medicaid is typically: A. The Federal Poverty Guidelines B. Financial need as demonstrated by the prior two-years federal income tax fillings C. The patient's score on the Internal Revenue Service's Personal Wealth and Spending indicator D. Bank statements for the previous 18 months - ✔ A. The Federal Poverty Guidelines Because 501(r) regulations focus on identifying potentially eligible financial assistance patients, hospitals must: A. Capture their experience with such patients to properly budget B. Hold financial conversations with patients as soon as possible C. Build the necessary processes to handle the potentially lengthy payment schedules D. Expedite payment processing of normal accounts receivables to protect cash flow - ✔ B. Hold financial conversations with patients as soon as possible Before classifying and subsequently writing off an account to financial assistance or bad debt, the hospital must establish policy, define appropriate criteria, implementation, identifying and processing accounts and: A. Obtain the patients income tax statements from the prior 2 years B. Having the account triaged for any partial payment possibilities C. Monitor compliance D. Assist in arranging for a commercial bank loan - ✔ C. Monitor compliance The benefit of a Medicare Advantage Plan is: A. It is a less costly plan compared to traditional Medicare B. Patients may retain a primary care physician and see another physician for a second opinion at no charge C. Patients generally have their entire Medicare-covered healthcare through the plan and do not need to worry about "Part A" or "Part B' benefits D. Patients receive significant discounting on services contracted by the federal government - ✔ C. Patients generally have their entire Medicare-covered healthcare through the plan and do not need to worry about "Part A" or "Part B" benefits A benefit period begins: A. With admission as an inpatient B. Upon the day the coverage premium is paid C. The first day in which a patient is furnished extended care services in the period the patient is entitled to hospital insurance D. Immediately once authorization for treatment is provided by the health plan - ✔ C. The first day in which a patient is furnished extended care services in the period the patient is entitled to hospital insurance The best practice in billing is to generate bills and financial information that is: A. Timely and specifies the patient's next steps B. Clear, concise, correct and patient-friendly C. Comprehensive and all-inclusive D. Direct in summarizing charges and in requesting prompt payment - ✔ B. Clear, concise, correct and patient-friendly Case management requires that a case manager be assigned: A. To a select group of resource intensive patient cases B. To every patient C. To specific cases designated by third-party contractual agreement D. To patients of any physician requesting case management - ✔ B. To every patient Claims edits are: A. Rules developed to verify the accuracy of claims based on each health plan's policies B. The specific reimbursement areas of a claim that are denied by the health plan C. Special addendums to the claim allowing the provider to submit additional documentation D. Triggers in the health plan claim adjudication system that disallows reimbursement - ✔ A. Rules developed to verify the accuracy of claims based on each health plan's policies Claims with dates of service received later than one year beyond the date of service, will be: A. Denied by Medicare B. The full responsibility of the patient C. The provider's responsibility but can be deemed charity care D. Fully paid with interest - Failure to take the appropriate precautions with a bankruptcy account, to identify and isolate the debtor's accounts from further collection activity: A. Provides evidence of unauthorized extraordinary collections activity B. Could be in violation of a court's order C. May violate the provisions of the patient protection regulations D. Could potentially create under "write-offs" - ✔ B. Could be in violation of a court's order The first thing a health plan does when processing a claim is: A. Review to make sure the claim is complete B. Verify if the provider(s) is(are) in network or not C. Check if the patient is covered D. Confirm if deductibles and con-insurance requirements have been met - ✔ C. Check if the patient is covered For Medicare patients, an important component of the pre-registration process is: A. Obtaining clear physician's orders B. Verifying Medicare eligibility C. Clear authorization for all services covered in Part A D. The effective completion of the Medicare Secondary Payer (MSP) screening process - ✔ D. The effective completion of the Medicare Secondary Payer (MSP) screening process For routine scenarios, such as patients with insurance coverage or a known ability to pay, financial discussions: A. May take place between the patient and discharge planning B. Should take place between the patient or guarantor and properly trained provider representatives C. Are optional D. Are focused on verifying required third-party information - ✔ B. Should take place between the patient or guarantor and properly trained provider representatives For scheduled patients, important revenue cycle activities in the time-of-service stage DO NOT include: A. Pre-registration record is activated, consents are signed, and co-payments are collected B. Positive patient identification is completed, and the patient is given an armband C. Obtaining or updating patient and guarantor information D. Pre-processed patients report to a designated "express arrival" desk - ✔ C. Obtaining or updating patient and guarantor information A four digit number code established by the National Uniform Billing (NUBC) that categorizes/classifies a line item in the chargemaster is known as: A. HCPCs codes B. ICD-10 Procedural codes C. CPT codes D. Revenue codes - ✔ D. Revenue codes The fundamental approach in managing denials is: A. To create billing "double-check" processes B. To analyze the type and sources of denials and consider process changes to eliminate further denials C. To standardize and centralize all billing activity to focus on compliance with contractual agreements D. to review all claims processing for compliance with contractual agreements - ✔ B. To analyze the type and sources of denials and consider process changes to eliminate further denials The healthcare industry is vulnerable to compliance issues, in large part due to the complexity of the statues and regulations pertaining to: A. Patient financial obligations for the entire cost of treatment B. Unregulated market activity for third-party payers C. Medicare and Medicaid payments D. Commercial third-party payers - ✔ C. Medicare and Medicaid payments Health Information Management (HIM) is responsible for: A. All patient medical records B. The maintenance of all software applications C. The maintenance of the entire technology infrastructure D. Clean claims being filed - ✔ A. All patient medical records Health Plan Contracting Departments do all the following EXCEPT: A. Reimbursement rate setting B. Review all managed care contracts for accuracy and load contract terms into the patient accounting system C. Review payment schemes to ensure that the health plan and provider understand how reimbursements must be calculated D. Review contracts to ensure the appeals process for denied claims is clearly specified - ✔ A. Reimbursement rate setting HFMA best practices call for patient financial discussions to be reinforced: A. By obtaining some type of collateral B. With a written statement of the conversation C. By issuing a new invoice to the patient D. Ny copying the provider's attorney on a written statement of the conversation - ✔ B. With a written statement of the conversation HFMA best practice specify that, In an Emergency Department setting: A. Financial conversations are inappropriate B. Financial conversations be brief and focused on obtaining third-party payer information C. Financial conversations be focused on obtaining basic demographic data needed to create the patient account D. No patient financial discussions should occur before a patient is screened and stabilized - ✔ D. No patient financial discussions should occur before a patient is screened and stabilized ✔ B. Demographic, Income, Assets, Expenses ICD-10-CM and ICD-10-PCD code sets are modifications of: A. The international ICD-10 codes as developed by the WHO (World Health Organization) B. ICD 9 codes C. CPT codes D. DRGs - ✔ B. ICD 9 codes Identifying the patient in the MPI, creating the registration record, completing medical necessity screening, determining insurance eligibility, obtaining insurance benefits, resolving managed care requirements, and completing financial education/resolution are all: A. The data collection steps for scheduling and pre-registering a patient B. Registration steps that must be completed before an medical services are provided C. The steps mandated for billing Medicare Part A D. The process of closing an account - ✔ A. The data collection steps for scheduling and pre-registering a patient If further treatment can only be provided in a hospital setting, the patient's condition cannot be evaluated and/or treated within 24 hours, or if there is not an anticipation of improvement in the patient's condition within 24 hours, the patient: A. Will be admitted as an inpatient B. Will remain in observation for up to 72 hours after which the patient is admitted as an inpatient C. Will be discharged and if needed, designated to a priority one outpatient status D. Will have his/her case reviewed by the attending physician and the primary care physician and a future course of care will then be determined - ✔ A. Will be admitted as an inpatient The impact of denials on the revenue cycle includes all of the following EXCEPT: A. Loss of revenue B. Increased collection fees C. Staff productivity D. Quality reputation - ✔ D. Quality reputation The importance of medical records being maintained by HIM is that the patient records: A. Are evidence used in assessing the quality of care B. Are the primary source for clinical data required for reimbursement by health plans and liability payers C. Are the strongest evidence and defense in the event of a Medicare audit D. Are the evidence cited in quality review - ✔ B. Are the primary source for clinical data required for reimbursement by health plans and liability payers The Important Message from Medicare provides beneficiaries information concerning their: A. Obligation to reimburse the hospital for any services not covered by the Medicare program B. Right to refuse to use lifetime reserve days for the current stay C. Right to appeal a discharge decision if the patient disagrees with the plan D. Understanding of billing issues and the deductible and/or co-insurance due for the current visit - ✔ C. Right to appeal a discharge decision if the patient disagrees with the plan Improving the overall patient experience requires revenue cycle leadership and staff to simultaneously be: A. Clear on policies and firm and consistent in applying the policies B. Careful in screening patient demands C. Monitoring cost and charges the patient incurs D. Inquisitive, responsive, innovative and flexible - ✔ D. Inquisitive, responsive, innovative and flexible In a self-insured (or self-funded) plan, the costs of medical care are: A. Borne by the employer on a pay-as-you-go basis B. Backed-up by stop-loss insurance against a catastrophic claim C. Mandated by the Affordable Care Act for small business unable to obtain commercial coverage D. Created by a combination of employer and employee contributions - ✔ A. Borne by the employer on a pay-as-you-go basis In choosing a setting for patient financial discussions, organizations should first and foremost: A. Have processes in place to document the discussions B. Assess locations for convenience, professionalism, and comfort C. Respect the patient's privacy D. Ensure all staff involved are properly trained and the patient financial education is included in all discussions - ✔ C. Respect the patient's privacy Incorrect data gathering can cause all of the following EXCEPT: A. Risks in patient safety and compliance B. Denied claims C. The inability to engage physicians in quality outcomes D. Low quality outcomes - ✔ C. The inability to engage physicians in quality outcomes Indemnity plans usually reimburse: A. Only for contracted services B. A claim up to 80% of the charges C. A certain percentage of the charges after the patient meets the policy's annual deductible D. A patient for out-of-pocket charges - ✔ C. A certain percentage of the charges after the patient meets the policy's annual deductible An individual enrolled in Medicare who is dissatisfied with the government's claim determination is entitled to reconsideration of the decision. This type of appeal is known as: A. A Medicare determination appeal B. A payment review C. A Medicare supplemental review D. A beneficiary appeal - ✔ D. A beneficiary appeal Maintaining routine contact with the health plan or liability contact with the health plan or liability payer, making sure all required information is provided and all needed approvals are obtained is the responsibility of: A. Patient accounts B. Case Management C. HIM staff D. Managed Care Contract Staff - ✔ B. Case Management Medicare beneficiaries remain in the same "benefit period": A. Up to 60 days B. Up to hospitalization discharge C. Until the beneficiary is "hospitalization-free" for 60 consecutive days D. Each calendar year - ✔ C. Until the beneficiary is "Hospitalization-free" for 60 consecutive days The Medicare Bundled Payments for Care Initiative (BCPI) is designated to: A. Prevent duplicate billing B. Drive down cost as one payment is shared by all care givers in a s single episode of care C. "Stretch" the impact of patient self-pay by squeezing costs down through a lump-sum payment to providers D. Align incentives between hospitals, physicians, and non-physician providers in order to better coordinate patient care - ✔ D. Align incentives between hospitals, physicians, and non-physician providers in order to better coordinate patient care The Medicare fee-for-service appeal process for both beneficiaries and providers includes all of the following levels EXCEPT: A. Redetermination by the company that handles claims for Medicare B. review by the Medicare Appeals Council (Appeals Council) C. Judicial review by a federal district court D. Medical Necessity review by an independent physicians panel - ✔ D. Medical Necessity review by an independent physicians panel Medicare has established guidelines called Local Coverage Determinations (LCD) and National Coverage Determinations (NCD that establish: A. Reasonable and customary prices for services in a given area B. Prospective Medicare patient financial responsibilities for a given diagnosis C. Provider and physician reimbursement for specific diagnoses and tests D. What services or healthcare items are covered under Medicare - ✔ D. What services or healthcare items are covered uder Medicare Medicare Part B has an annual deductible, and the beneficiary is responsible for: A. A co-insurance payment for all Part B covered services B. Physician's office fees C. Tests outside of an inpatient setting D. Prescrirptions - ✔ A. A co-insurance payment for all Part B covered services Medicare patients are NOT required to produce a physician's order to receive which of the services? A. Diagnostic mammography, flu vaccine or B-12 shots B. Diagnostic mammography, flu vaccine or pneumonia vaccine C. Screening mammography, flu vaccine or pneumonia vaccine D. Screening mammography, flu vaccine or B-12 shots - ✔ C. Screening mammography, flu vaccine or pneumonia vaccine The most effective payment plan programs: A. Screen patients to determine if they are capable of paying B. Are rigorous in patient follow-up C. Do not allow missed payments D. Are turned over to a collection agency - ✔ A. Screen patients to determine if they are capable of paying Most major health insurance payers, including Medicare and Medicaid, offer: A. Hard-copy documentation of insurance coverage B. Insurance verification through agents who are available during normal business hours C. Electronic verification of insurance coverage D. Provider "self-service" web portal accessible through the policy holder's plan ID number - ✔ C. Electronic verification of insurance coverage Most major health plans including Medicare and Medicaid, offer: A. Toll free verification hot lines, staffed around the clock B. Electronic and/or web portal verification C. Patient "verification of benefits" cards D. A grace period for obtaining verification within 72 hours of treatment - ✔ B. Electronic and/or web portal verification A nightly room charge will be incorrect if the patient's: A. Transfer from the ICU (Intensive care unit) to the Medical/Surgical floor is not reflected in the registration system B. Pharmacy orders have not been entered into the pharmacy system C. Condition has not been discussed during the shift change report meeting D. Discharge for the next day has not been charted - ✔ A. Transfer from the ICU (intensive care unit) to the Medical/Surgical floor is not reflected in the registration system Once the EMTALA requirements are satisfied: A. Third-party payer information should be collected from the patient and payer be notified of the ED visit B. An initial registration record is completed so that the proper coding can be initiated C. The patients then assume full liability for services unless a third-party payer is notified or the patient applies for financial assistance within the first 48 hours D. The remaining registration processing is initiated either at the bedside or in a registration area - ✔ D. The remaining registration processing in initiated either at the bedside or in a registration area Once the price is estimated in the pre-service stage, a provider's financial best practice is to: C. Be lower as price estimates use the highest market price D. Only determine the percentage of the total that the patient is responsible for and not the actual cost - ✔ A. Vary from estimates, depending on the actual services performed The physician who wrote the order for service and is in charge of the patient's care is: A. The patient's personal physician B. The primary care physician C. The attending physician D. The Physician Patient Care Director - ✔ C. The attending physician Pricing transparency is defined as readily available information on the price of healthcare services, that together with other information, help define the value of those consumers to: A. Negotiate the cost of health plan premiums B. Customize health care with a personally chosen mix of providers C. Identify, compare, and choose providers that offer the desired level of value D. Verify the cost of individual clinicians - ✔ C. Identify, compare, and choose providers that offer the desired level of value The process of pre-registration ensures: A. Accurate billing B. Early and productive communication with any third party payer C. That access staff will have the complete and valid information needed to finalize any remaining pre0access activities D. The patient arrives understanding their financial responsibilities - ✔ C. That access staff will have the complete and valid information needed to finalize any remaining pre-access activities The purpose of the ACA mandated Community Health Needs Assessment is: A. To obtain the data needed to determine the local allocation of federal healthcare funding B. To identify significant health needs, prioritize those needs and identify resources to address them C. To provide community benefit outreach to those without insurance and who have not had a physical within the past two years D. To create health information databases, calibrated to local needs, and to improve claims processing accuracy - ✔ B. To identify significant health needs, prioritize those needs and identify resources to address them Recognizing that health coverage is complicated and not all patients are able to navigate this terrain, HFMA best practices specify that: A. A representative of the health plan be included in the patient financial responsibilities discussion B. The patient accounts staff have someone assigned to research coverage on behalf of patients C. Patients should be given the opportunity to request a patient advocate, family member, or other designee to help them in these discussions D. patient coverage education may need to be provided by the health plan - ✔ C. Patients should be given the opportunity to request a patient advocate, family member, or other designee to help them in these discussions A recurring/series registration is characterized by: A. The creation of one registration record for multiple days of service B. The creation of multiple registrations for multiple services C. The creation of one registration record per diagnosis per visit D. The creation of multiple patient types for one date of service - ✔ A. The creation of one registration record for multiple days of service Reimbursement and budget personnel actively model coding and reimbursement changes that result from the coding are put in place to guard against: A. Underpayments B. Denials C. Compliance fraud by "upcoding" D. Chargemaster error - ✔ C. Compliance fraud by "upcoding" The result of accurate census balancing on a daily basis is: A. The overall accuracy of resource planning B. The correct recording of room charges C. The increased efficiency in treatment D. Improved ability to plan nursing staff support services - ✔ B. The correct recording of room charges Revenue cycle activities occurring at the point-of-service include all of the following EXCEPT: A. The provision of case management and discharge planning services B. Providing charges to the third-party payer as they are incurred C. The generation of charges D. The monitoring of charges - ✔ A. The provision of case management and discharge planning services Scheduled procedures routinely include: A. Physician notification that scheduling is complete B. Patient preparation instructions C. Information on financial obligations D. The scheduler's name and contact information - ✔ B. Patient preparation instructions The soft cost of a dissatisfied customer is: A. The "cost" of staff providing extra attention in trying to perform service recovery B. The customer passing on information about their negative experience to potential patients or through social media channels C. A potentially negative treatment environment due to patient hostility D. Lowered quality outcomes for the dissatisfied patient - ✔ B. The customer passing on information about their negative experience to potential patients or through social media channels Successful account resolution beings with: A. Educating patients on their estimated financial responsibility B. Collecting all deductibles and copayments during the pre-service stage ✔ C. Outpatient time directly preceding the inpatient admission Under EMTALA (Emergency Medial Treatment Labor Act) regulations, the provider may not ask about a patient's insurance information if it would delay what? A. Transfer to another facility B. Complete course of treatment C. Admission to observation status D. Medical screening and stabilizing treatment - ✔ D. Medical screening and stabilizing treatment Unless the patient encounter is an emergency, it is more efficient and effective to: A. Collect all information after the patient has been discharged B. Use historical information and contact the patient only if the claim is rejected C. Obtain the required demographic and insurance information before services are rendered D. Contact the patient's physician to obtain the necessary registration information after services are rendered - ✔ C. Obtain the required demographic and insurance information before services are rendered Unless the patient encounter is an emergency, it is more efficient and effective to: A. Collect all information after the patient has been discharged B. Use historical information and contact the patient only if the claim rejects C. Obtain the required demographic and insurance information before services are rendered D. Contact the patient's physician to obtain the necessary registration information after services are rendered - ✔ C. Obtain the required demographic and insurance information before services are rendered The unscheduled "direct" admission represents a patient who: a) Is admitted from a physician's office on an urgent basis b) Arrives at the hospital via ambulance for treatment in the emergency room c) Is an ambulatory patient who collapses in the hospital lobby d) Arrives on the medical helicopter for trauma services - ✔ A. Is admitted from the physician's office on an urgent basis Vital to accurate calculations of a patient's self-pay amount is: A. Understanding exactly how each contracted payer adjudicates the benefit package provided to the patient B. Knowing exactly what each contracted payer will accept as an "approved" charge C. The total out-of-pocket that a patient must meet before a third-party payer is liable D. Understanding the payer's claims adjudication requirements - ✔ C. The total out-of-pocket that a patient must meet before a third-party payer is liable What activities are completed when a scheduled, pre-registered patient arrives for service?: A. Verifying insurance, activating the record, and directing the patient to the service area B. Scanning the driver's license or other photo identification and directing the patient to the financial counselor C. Activating the record, obtaining signatures, and finalizing financial issues D. Registering the patient and directing the patient to the serve area - ✔ C. Activating the record, obtaining signatures, and finalizing financial issues What are some core elements of a board-approved financial policy: A. Charity care, payment methods, and installment payment guidelines B. Case management, payment methods, and discharge policies C. Payment requirements, staffing hours, and admission policies D. Deposit requirements, pre-registration calling hours, and charity care policy - ✔ A. Charity care, payment methods, and installment payment guidelines What is likely to occur if credit balances are not identified separately from debit balances in accounts receivable? A. The organization would be required to refund overpayments with interest B. The accounts receivable level would be understated C. Cash flow projections would be jeopardized D. The accuracy and integrity of fiscal year end audits would be suspect - ✔ B. The accounts receivable level would be understated What is required for the UB-04/837-I, used by Rural Health Clinics to generate payment from Medicare? A. Revenue codes B. The CMS 1500 Part B C. Medical necessity documentation D. Correct Part A and B procedural codes - ✔ A. Revenue codes What is the first step of the daily reconciliation process? A. Obtaining the prior business days total cash, plus actual current cash received B. Obtaining cash, check, credit card, and debit card payments received that day C. Obtaining the daily total of cash received minus any know adjustments such as refunds or write- offs made the same day D. Obtaining the number of transactions and their total cash value minus budgeted average daily expense - ✔ B. Obtaining cash, check, credit card, and debit card payments received that day What type of account adjustment results from the patient's unwillingness to pay a self-pay balance? A. Charity adjustment B. Bad debt adjustment C. Contractual adjustment D. Administrative adjustment - ✔ B. Bad debt adjustment When accounts are reported as uncollectable and returned to the provider by the collection agency: A. The provider may enter into litigation to collect the amount due B. The provider's policies are followed to ensure that the bad debt expense and allowance for uncollectable accounts correctly reflect the status of these returned accounts C. The default is reported to consumer credit agencies creating a downgrade in the debtor's credit worthiness rating D. The account is simply written off as bad debt - ✔ B. The provider's policies are followed to ensure that the bad debt expense and allowance for uncollectable accounts correctly reflect the status of these returned accounts