Certified Revenue Cycle Representative (CRCR) Practice Exam

Which resolution method for credit balances is NOT common?

1. Designate the overpayment for charity care

2. Submit the corrected claim to the payer

3. Send a refund or complete a takeback form

4. Determine the correct primary payer and notify incorrect payer

The correct answer is: Designate the overpayment for charity care

Designating the overpayment for charity care is not a common resolution method for credit balances. Typically, credit balances arise from overpayments made by patients or payers, and the standard procedures for resolving these balances involve actions that address financial transactions and clarifications related to billing. Common methods such as submitting a corrected claim, sending a refund, or determining the correct primary payer focus on rectifying the financial discrepancy through direct communication with payers or through direct reimbursement methods. While charity care is a valuable program for assisting patients who cannot afford medical bills, using overpayments in this way does not align neatly with standard billing practices and could lead to complications in financial reporting or compliance with accounting standards. This makes the designation of overpayment for charity care an unconventional approach within the context of resolving credit balances, as it diverts from the usual and accepted methods that ensure prompt and accurate handling of such financial issues.