In an Effort to Reduce the Processing Time for Each

question 10

Short Answer

In an effort to reduce the processing time for each health insurance claim submitted and to reduce costs related to health care delivery, Medicare uses a ______________ prospective payment system on which hospital fee reimbursements are based.

---

Definitions:

Wage Rate

The amount of money paid to an employee per unit of time, such as hourly wages or annual salary, for their labor or services.

Actual Time

The exact time during which a task or activity was performed, as recorded or measured in reality.

Estimated Time

The approximation of the time required to complete a specific task or project.

Underapplied Manufacturing Overhead

Occurs when the allocated manufacturing overhead costs are less than the actual overhead costs incurred, resulting in a cost variance.