Certified Medical Administrative Assistants (CMAA) Practice Exam

What method divides patient accounts to send out portions of monthly statements at different times?

1. Cycle billing

2. Group billing

3. Standard billing

4. Sequential billing

The correct answer is: Cycle billing

Cycle billing is a method that divides patient accounts so that portions of monthly statements are sent out at different times throughout the month. This approach helps in managing the flow of billing and reduces the administrative burden, allowing office staff to process and send statements more efficiently. By staggering the statements, a healthcare practice can maintain a consistent cash flow, as payments may be received throughout the month rather than all at once. This method also provides patients with more manageable billing cycles, as it ensures that not all patients are receiving their bills at the same time, which can help reduce confusion and enhance payment responses. In contrast, methods like group billing or sequential billing offer different approaches to organizing accounts but do not specifically focus on spreading out the timing of account statements in the method that cycle billing does.