What does the means test assess in relation to patient charges?

• A. It assesses indigence.
• B. It assesses insurance coverage.
• C. It assesses medical necessity.
• D. It assesses payment history.

Answer: (A)

Means testing in patient billing evaluates a person’s financial situation to determine if they are indigent and qualify for charity care or a sliding-scale payment arrangement. The goal is to identify patients who lack the resources to pay so charges can be waived or reduced accordingly. It’s not about whether insurance covers the service, whether the service was medically necessary, or the patient’s past payment history. For example, someone with income well below the poverty level may be classified as indigent and receive reduced charges under the hospital’s charity policy.