1. A hospital uses a charge description master (CDM) to assign prices to the

services and items it provides to patients. Which of the following statements

is true about the CDM?

a) The CDM is updated annually by the Centers for Medicare and Medicaid

Services (CMS).

b) The CDM is based on the relative value units (RVUs) of each service or

item.

c) The CDM is a comprehensive list of all the charges that appear on a

patient's bill.

d) The CDM is a standardized tool that ensures consistent and accurate

billing across different payers. *

Rationale: The CDM is a standardized tool that ensures consistent and

accurate billing across different payers. It contains codes, descriptions, and

prices for each service or item that the hospital provides. The CDM is not

updated by CMS, but by the hospital itself. The CDM is not based on RVUs,

which are used to determine physician reimbursement. The CDM is not a

comprehensive list of all the charges that appear on a patient's bill, as some

charges may be added or adjusted by other departments or systems.

2. A patient visits an urgent care center for a minor injury and pays a

copayment at the time of service. The urgent care center submits a claim to

the patient's insurance company for reimbursement. Which of the following

terms best describes the amount that the insurance company pays to the

urgent care center?

a) Deductible

b) Coinsurance

c) Allowable amount *

d) Contractual adjustment

Rationale: The allowable amount is the amount that the insurance company