Question

Entering SIGNATURE ON FILE in Block 12 of the CMS-1500 claim means that, in order to release medical information to the payer, the patient has signed a(n):

1) Source document
2) Assignment of benefits
3) Authorization
4) Encounter form

Answer 1

Entering 'SIGNATURE ON FILE' on a CMS-1500 claim indicates the patient has authorized the release of medical information to the insurer. It asserts that consent is documented in their records, expediting the billing process.

Step-by-step explanation:

When 'SIGNATURE ON FILE' is entered in Block 12 of the CMS-1500 claim form, it indicates that the patient has indeed provided a formal authorization, allowing the release of medical information to the insurance payer. The medical provider or the facility would have obtained this consent from the patient beforehand, and it would typically be a part of the patient's record with the provider. Entering this phrase is a shorthand acknowledgement that such an authorization is already secured and kept on file, hence there is no need to physically attach the expressed consent each time a claim is submitted.

This authorization is crucial, without it, medical information cannot be disclosed due to privacy laws such as HIPAA (Health Insurance Portability and Accountability Act), which are designed to protect patient's personal health information. Therefore, this entry ensures that the workflow of medical billing continues smoothly by affirming that the necessary permissions for billing the insurance and releasing medical information have been granted by the patient. In summary, 'SIGNATURE ON FILE' corresponds to an authorization given by the patient to release medical information, not an assignment of benefits, source document, or encounter form.

In healthcare billing, entering 'SIGNATURE ON FILE' implies the patient has signed a consent authorization to release medical information. This step is a compliance with privacy regulations and streamlines the claims process.