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Find definitions of common insurance and reimbursement terms as well as terms associated with Cephalon Oncology products.

   Glossary
 
Adjudication - process used to receive payment for a claim.

Advance Beneficiary Notice - written notification given to a patient that payment may be denied or reduced, thereby holding the patient responsible for any residual amount.

Ambulatory Payment Classification - part of Medicare's Outpatient Prospective Payment System for hospital outpatient clinics.

Appeal - process for reconsideration of a denied claim.

Assignment - agreement that a provider will bill Medicare directly and accept the allowable amount of payment.

Average Sales Price - average price from the manufacturer, net of all discounts, rebates, charge-backs, and credits for drugs.

Average Wholesale Price - suggested retail price determined by the manufacturer.

Carrier - insurer contracted by Medicare to administer Medicare Part B benefits.

Case Management - management of a specific patient's care by a registered nurse or other qualified individual.

Centers for Medicare and Medicaid Services - agency charged with administering Medicare and Medicaid.

Charge Description Master - central file containing billing elements for all generated charges.

Claim - information submitted to insurers requesting payment for covered services.

CMS 1500 - claim form used to submit claims for Medicare Part B.

Commercial Carriers - for-profit insurance companies offering health insurance.

Copayment - amount not covered by insurers; the patient is responsible for paying.

CPT Code - Current Procedural Terminology. Multiple codes are acceptable to use for an appointment with multiple procedures.

Current Procedural Terminology - numeric codes supplied by the American Medical Association used to charge for physicians' services.

Deductible - fixed payment a patient must make before insurer provides coverage.

Diagnosis-Related Groups - classification of diagnoses for the purpose of hospital reimbursement in the Inpatient Prospective Payment System.

Dual Eligibility - eligible for both Medicaid and Medicare.

Durable Medical Equipment - medical equipment used repeatedly in the treatment of illness and injury.

EOB - Explanation of Benefits is a document outlining all health insurance benefits, lifetime caps, reimbursement policies, and other important information. The health insurance provider typically supplies this document.

Evaluation and Management Codes - included in the current procedural terminology codes to classify cognitive services performed for patients by healthcare providers.

Fiscal Intermediary - insurance company contracted by the Centers for Medicare and Medicaid Services to administer Medicare Part A.

Healthcare Common Procedure Codes - billing codes used to submit claims for procedures, supplies, drugs, and physician services.

Health Maintenance Organization - health plan in which members are required to use a network of providers for a specific time period.

HIPAA - Health Insurance Portability and Accountability Act of 1996. This law relates to underwriting, pre-existing limitations, guaranteed renewal, COBRA, and certification requirements in the event someone terminates from the plan. It establishes new requirements for self-funded, fully insured group plans (including church plans), and individual health policies.

Incident to Services - services or supplies provided by a physician, used as an integral but incidental part of diagnosing and treatment of injuries or illness of Medicare B-covered patients, usually excluding drugs that can be self-administered.

Innovator Multi-Source Drugs - brand name drugs with generic equivalents.

Inpatient Prospective Payment System - used by the Centers for Medicare and Medicaid Services to determine payment of claims.

Intermediaries - insurers who have a contract with the Centers for Medicare and Medicaid Services to process Medicare Part A claims.

International Classification of Diseases, 9th Edition - codes used to classify diseases, symptoms, conditions, and procedures.

Major Diagnostic Category - used in Diagnosis-Related Groups reimbursement by classifying diagnoses grouped according to body system.

Medicaid - Centers for Medicare and Medicaid Services program administered by both federal and state governments providing coverage for needy people of all ages. Programs vary by state.

Medicare - Medicare is the federal-funded health insurance initiative, which many of the privately funded health insurance providers follow for what claims are paid and which ones are not.

Medicare Part A - program administered through intermediaries by the Medicare and Medicaid Services to cover inpatient care.

Medicare Part B - program administered through carriers by the Centers for Medicare and Medicaid Services to cover outpatient care.

Medicare Part C - optional purchased coverage in addition to Medicare Part A and B. Examples include Medicare + Choice and Medicare Risk Plus. Includes managed care plans.

Medicare Part D - new Medicare plan providing prescription drug coverage for Medicare recipients that will be offered in 2006.

Medicare Prescription Drug, Improvement and Modernization Act - act signed into law on December 8, 2003, designed to improve benefits to seniors and disabled people. Includes a prescription drug benefit.

Medigap - supplemental insurance for Medicare recipients sold by private insurance companies.

Non-Innovator Multi-Source Drugs - generic medications.

Outlier - medical cases with higher-than-average established cost or length of stay.

Outpatient Prospective Payment System - used by the Centers for Medicare and Medicaid Services to determine payment of claims submitted for inpatients with Medicare.

Packaged Drugs - drugs whose costs are packaged into the payment for the assigned Ambulatory Payment Classification, and not separately reimbursed.

Pass-Through Drugs - drugs designated for a maximum of two to three years to be reimbursed separately from Ambulatory Payment Classifications prior to determination of payment method by the Outpatient Prospective Payment System.

Pre-Certification - an insurance company requirement that an insured obtain pre-approval before being admitted to a hospital or receiving certain kinds of treatment.

Preferred Provider Organization - fee-for-service organization offering a variety of plans and contracts with providers to pay a discounted fee for their services.

Relative Value Unit - weight assigned to current procedural terminology codes representing value based on the complexity of service.

Revenue Codes - billing code used by hospitals to identify cost centers affiliated with services, pharmaceuticals, and supplies charged to Medicare patients. Also referred to as UB-92 codes.

Self-Administered Drugs - non-covered injectable medications not usually self-administered by more than 50% of outpatients.

Sole Source Drugs - brand name drugs without generic equivalents.

Specified Covered Outpatient Drugs - covered drugs assigned an Ambulatory Payment Classification for which the designation of pass-through (separate) payment was made prior to 12/31/2002.

Status Indicators - list of alphabetical codes used to determine if a drug is paid separately under the Outpatient Prospective Payment System.

TRICARE - triple-option healthcare program bringing together the Civilian Health and Medical Program of the Uniformed Services as well as the healthcare delivery services of each of the military services.

UB-92 - synonymous with the CMS-1450 form used by hospitals to file Medicare claims for services rendered to both inpatients and outpatients.

 
 
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