American Academy of Professional Coders (AAPC) Practice Exam

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Prepare for the American Academy of Professional Coders exam with our comprehensive quiz, featuring multiple-choice questions designed to enhance your coding skills and knowledge. Ideal for aspiring medical coders looking to succeed in the certification process.

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What does CMS instruction say regarding cost estimates in the ABN?

  1. Estimates must be final and binding

  2. Estimates should be within $100 or 25% of actual costs

  3. Estimates need not be provided

  4. Estimates can be verbal only

The correct answer is: Estimates should be within $100 or 25% of actual costs

The correct statement regarding CMS instruction on cost estimates in the Advanced Beneficiary Notice of Noncoverage (ABN) is that estimates should be within $100 or 25% of actual costs. This means that when a provider is informing a patient about potential charges for services that may not be covered by Medicare, they should provide a reasonable estimate that aligns closely with the expected actual costs. This helps patients understand their financial responsibility and make informed decisions about their care. Providing estimates within this range ensures transparency and fairness, as it gives patients a realistic expectation of what they might be billed, thus avoiding significant discrepancies between the estimate and the actual charges. This guideline serves to protect patients from unexpected expenses and maintains a level of trust between healthcare providers and beneficiaries.