CPB Certified Professional Biller Certification Practice Exam

What does the abbreviation ABN stand for in medical billing?

1. Advance Balance Notification

2. Advance Beneficiary Notice

3. Authorized Billing Number

4. Advanced Benefit Network

The correct answer is: Advance Beneficiary Notice

The abbreviation ABN in medical billing stands for Advance Beneficiary Notice. This document is crucial in the healthcare billing process as it informs Medicare beneficiaries that a service or item may not be covered by Medicare. When a healthcare provider suspects that Medicare might deny payment for a particular service, the provider is required to present the beneficiary with an ABN. The notice allows beneficiaries to make informed decisions about whether to receive the service knowing they may incur out-of-pocket costs. It’s a protective measure ensuring that patients are aware of their financial responsibilities before services are rendered. This fosters transparency in billing and enhances the patient's understanding of their healthcare coverage. In contrast, the other options inaccurately represent what ABN stands for in this context, making it important to know that "Advance Beneficiary Notice" is the standard term recognized in medical billing practices.