The Overall Purpose of HIPAA Transactions and Code Set Rule

question 32

Multiple Choice

The overall purpose of HIPAA Transactions and code set Rule is to:

• A) require that all claims be submitted in exactly the same electronic format.
• B) limit the number of methods that can be used for file encryption.
• C) standardize the electronic exchange of protected health information (PHI).
• D) authorize certain organizations to act as claims clearinghouses.

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Definitions:

CM Ratio

Stands for Contribution Margin Ratio; it is a financial metric that measures the proportion of revenue that exceeds variable costs and contributes to covering fixed costs and generating profit.

Segmented Income Statement

An income statement that presents revenues, expenses, and profits for different segments of a business, offering detailed financial analysis.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment or product line.

Variable Costing

A bookkeeping approach that incorporates only variable production expenses such as direct materials, direct labor, and variable manufacturing overhead into the costs of products.