What is the primary purpose of an Advance Beneficiary Notice?

Prepare for the Virginia Health Insurance Exam. Utilize flashcards and multiple choice questions, each with hints and explanations, to boost your knowledge. Get exam-ready today!

The primary purpose of an Advance Beneficiary Notice (ABN) is to specify services not covered by Medicare. This notice is crucial in informing patients when a healthcare provider believes that a service might not be reimbursed by Medicare. By providing an ABN, the provider notifies the patient that they may be personally responsible for the costs if Medicare denies coverage for the service. This transparency helps patients make informed decisions regarding their healthcare and financial responsibilities.

Patients must understand that if they receive an ABN, they should consider whether to proceed with the service, as they may face out-of-pocket expenses. This notice serves as a critical communication tool between the provider and patient, ensuring that patients are aware of potential costs upfront.

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