CPB (Certified Professional Biller) Certification Practice Exam

What does an "Accounts Receivable Aging Report" show in medical billing?

1. Payment correction resulting in additional payment(s) to the provider

2. Document that acknowledges patient responsibility for payment

3. The appearance of a pathologic condition due to a chemical substance

4. Shows the status of outstanding claims from each payer

The correct answer is: Shows the status of outstanding claims from each payer

The Accounts Receivable Aging Report is a crucial tool in medical billing that provides a snapshot of the outstanding balances owed by patients and insurance companies. This report categorizes these amounts based on the length of time they have been outstanding. By showing the status of outstanding claims from each payer, it enables billing personnel to identify which claims are overdue and to prioritize follow-up actions. This helps in managing cash flow and ensuring timely payments, which is essential for the financial health of a healthcare facility. The other choices do not accurately describe the purpose of an Accounts Receivable Aging Report. For instance, while payment corrections could affect accounts receivable, they do not directly relate to the aging or status of outstanding claims. Similarly, acknowledging patient responsibility for payments is important in billing practice but does not encompass the broad overview that an aging report provides. The reference to a pathologic condition due to a chemical substance is unrelated to accounts receivable and is more relevant to medical diagnoses rather than billing practices. Thus, the correct choice reflects the primary function of the report in managing the financial aspects of healthcare services.