Certified Revenue Cycle Representative (CRCR) Practice Exam

In the context of healthcare billing, what does 'MSP' stand for?

1. Medicare Secondary Payment

2. Medical Services Program

3. Managed Service Provider

4. Medicare Standard Protocol

The correct answer is: Medicare Secondary Payment

MSP stands for Medicare Secondary Payment, which is a critical aspect of healthcare billing and reimbursement processes. This concept applies when Medicare does not assume primary responsibility for a patient's healthcare costs. Instead, another payer, such as private insurance or a worker's compensation program, is designated as the primary payer. When the primary payer pays its designated share of the medical costs, Medicare may then cover the remaining eligible expenses as a secondary payer. This sequence is vital for ensuring that healthcare providers receive appropriate reimbursement for the services rendered while adhering to guidelines established for coordination of benefits. Understanding how MSP functions is essential for billing professionals to navigate the complexities of payer relationships and optimize reimbursement processes.