What does ABN stand for in healthcare billing?

ABN stands for Advance Beneficiary Notice of Noncoverage in healthcare billing. This important document is utilized when a healthcare provider believes that a service or item may not be covered by Medicare. The ABN informs beneficiaries that Medicare may deny payment for the service and gives patients the opportunity to make an informed decision about whether to proceed with the care knowing they may be responsible for the costs.

The use of an ABN is crucial for maintaining compliance with federal regulations regarding patient billing and ensuring that patients are aware of their financial responsibilities before they receive services. It protects both patients and providers by clarifying potential coverage issues upfront, allowing patients to agree or disagree to receive services under the possibility of non-coverage. This proactive communication ultimately benefits the revenue cycle by reducing the potential for denied claims after services have been rendered.

The other options do not reflect the correct terminology or function of the document in question, as they do not pertain to the established guidelines and practices of healthcare billing with Medicare.