What administrative procedure is used to process a claim for service in the health care field?

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Prepare for the Certified Compensation Professional (CCP) Electronic Transactions Association (ETA) Exam with flashcards and multiple choice questions. Each question includes hints and explanations to enhance your understanding. Get ready for your CCP exam today!

The administrative procedure utilized to process a claim for service in the healthcare sector is adjudication. This process involves the examination of health insurance claims to determine their validity and the appropriate reimbursement based on the coverage provisions. During adjudication, the insurer reviews the claim submitted by the healthcare provider, assessing factors such as the necessity of the service provided, adherence to policy guidelines, and the applicable payment terms.

This systematic method ensures that all claims are evaluated fairly and efficiently, leading to accurate and timely payments. It is also a crucial step in identifying any discrepancies or potential fraud in the claims being submitted. Overall, adjudication plays a vital role in maintaining the integrity and functionality of health insurance systems.

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