CPB Certified Professional Biller Certification Practice Exam

What is the purpose of an Advance Beneficiary Notice (ABN)?

1. A notice to inform patients of possible upcoming changes

2. A document acknowledging patient responsibility for payment

3. To provide educational resources for patients

4. A form to submit complaints regarding healthcare

The correct answer is: A document acknowledging patient responsibility for payment

The purpose of an Advance Beneficiary Notice (ABN) is to inform a patient that a service may not be covered by Medicare, which means the patient may be responsible for payment if the service is provided. The ABN is given to patients before they receive services that might not be reimbursed by their insurance plan, especially Medicare. By signing the ABN, the patient acknowledges their financial responsibility should the service not be covered. This process is crucial in helping patients make informed decisions about their healthcare and financial obligations. It ensures transparency about potential costs and protects both the provider and the patient from unexpected billing.