CPB (Certified Professional Biller) Certification Practice Exam

What does CMP stand for in the medical billing field?

1. Continuous Medical Plan

2. Competent Medical Provider

3. Complete Medical Payment

4. Competitive Medical Plan

The correct answer is: Competitive Medical Plan

The term CMP in the medical billing field stands for Competitive Medical Plan. This refers to a type of health care plan that operates within a competitive market, allowing patients to choose from various providers who offer services at negotiated rates. Competitive Medical Plans are often part of networks that healthcare providers join to offer their services to patients while keeping costs reasonable and benefits attractive. In the medical billing context, understanding CMP is important as it impacts how services are billed, the reimbursement rates that facilities can expect, and the dynamics between providers and payers. CMPs can influence a patient's choice of plans and providers, which ultimately affects billing procedures and revenue cycles for healthcare organizations. The other terms, while they may sound plausible, do not accurately reflect standard terminology used in medical billing. They do not encapsulate the competitive nature of such health plans or the operations typical to the medical billing framework. Understanding this distinction is crucial for professionals in the field to navigate the complexities of healthcare billing effectively.