Variable Pay Plans Attempt to Provide Tangible Rewards, or Incentives

question 50

True/False

Variable pay plans attempt to provide tangible rewards, or incentives, to employees for performance beyond normal expectations.

Explain the preauthorization process and its importance in medical billing.

Distinguish between preauthorization and predetermination.

Identify correct data entry practices for medical billing programs.

Recognize the advantages of submitting claims electronically.

---

Definitions:

Normal Good

A good for which demand increases as the income of the individual increases, showing a direct relationship between income and demand.

Auto Workers

Employees in the automotive industry who are involved in the manufacturing, designing, and maintenance of vehicles.

Marginal Revenue Product

The supplementary revenue created by the addition of one unit of a production input.

Product Price

The amount of money charged for a product or service, determined by cost, demand, and supply factors.