Certified Outpatient Coder (COC) Practice Exam

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Prepare for the Certified Outpatient Coder exam with our quiz. Engage with multiple choice questions, detailed explanations, and hints to ensure you're ready for success. Ace your exam with confidence!

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What entity is responsible for identifying services included in the Charge Description Master (CDM)?

The provider performing the service
The department performing the service
The insurance company
The billing department

The correct answer is: The department performing the service

The Charge Description Master (CDM) is a comprehensive list of items billable to a hospital or healthcare facility's patients or insurance payers. Its responsible entity is the department performing the service, as this department is intimately familiar with the specific services and procedures that it provides. Each department is tasked with ensuring that its services are accurately represented and priced within the CDM. This includes defining the charges for procedures, tests, and any other healthcare services, as well as ensuring these charges align with established guidelines and regulations. The provider performing the service may have insight into the clinical aspects, but they typically do not make decisions regarding billing codes or charges. Insurance companies do not play a role in creating or identifying the services listed in the CDM; their function is more about reimbursement based on the established codes. The billing department processes claims and ensures accurate billing but relies on the department's specifications within the CDM to do this effectively. Therefore, the most accurate answer is that it is the department performing the service that is responsible for identifying the services included in the CDM.