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.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the difference between covered and non-covered items?

Covered items are always the most expensive options
Covered items require a pre-approval process
Non-covered items can be treated as reasonable and necessary for payment
Covered items are linked to approved diagnoses, non-covered items are not

The correct answer is: Covered items are linked to approved diagnoses, non-covered items are not

The distinction between covered and non-covered items is essential in the context of healthcare insurance and reimbursement. Covered items are typically those services, procedures, or items for which the insurance plan provides payment based on established guidelines. This means that covered items are linked to specific, approved diagnoses or conditions that have been recognized by the insurance provider as necessary for patient care. In contrast, non-covered items often do not meet these criteria. They may not be associated with approved diagnoses or may be deemed experimental, cosmetic, or not medically necessary according to the insurer's policy. This lack of linkage to approved conditions means that patients or providers would need to bear the cost of non-covered items out of pocket, as these items typically fall outside the scope of benefits that the insurance plan covers. The other options do not accurately characterize the relationship between covered and non-covered items. For instance, being the most expensive option does not inherently make an item covered; pre-approval processes are not universally required for all covered items; and the idea that non-covered items can be treated as reasonable and necessary for payment contradicts the fundamental definition of non-covered services. Hence, recognizing that covered items are tied to approved diagnoses while non-covered items are not is key to understanding healthcare reimbursement.