What are the two most common types of medical billing?

Asked by: Gabe Farrell I  |  Last update: September 15, 2025
Score: 4.7/5 (19 votes)

For people interested in becoming a medical biller, it's crucial to recognize that different types of medical billing exist. Healthcare providers may follow two types of medical billing: institutional and professional. How these two medical billing systems process claims can vary vastly.

What are the two types of medical billing?

If you're interested in how to start a medical billing and coding career path, you should know more about the two types of billing in the healthcare field, which are professional billing and institutional billing.

What are the different types of medical billing forms?

The most common types include the CMS 1500 form, the UB-04 form, and the ADA Dental form. CMS 1500 or HCFA-1500 form, this is the standard form used by healthcare professionals and suppliers to bill Medicare carriers and durable medical equipment regional carriers.

What are the two major types of medical reimbursement in the United States?

Healthcare Reimbursement Methods
  • Fee-for-service: This model is a direct reimbursement of medical providers for the services they provide. ...
  • Value-based: This model reimburses a provider based on the quality (not quantity) of their performance and is a favored model for the future of healthcare delivery.

What are the different bill types for medical billing?

Types of Bills
  • Inpatient Bills. Patients who are admitted to the hospital (inpatients) will receive multiple bills. ...
  • Obstetrics/Newborn Bills. ...
  • Observation Bills. ...
  • Surgery Bills. ...
  • Emergency Department Bills. ...
  • Obstetrical Emergency Department (OBED) Bills. ...
  • Imaging Bills. ...
  • Doctors' Bills.

Medical Billing and Coding (Everything You Need To Know About This Industry)

28 related questions found

What are the two types of billing methods?

There are three types of billing methods: time-based, usage-based, and feature-based. Time-based billing is the most common type, where the customer is billed based on the duration of the service. Usage-based billing charges the customer based on the amount of resources or bandwidth they use.

What are the two major categories of bills?

Public bills pertain to matters that affect the general public or classes of citizens, while private bills pertain to individual matters that affect individuals and organizations, such as claims against the Government.

What are the 2 types of healthcare?

Health care can generally be divided in two major categories mainly traditional (integrative/complementary/indigenous/alternative) and modern (western/conventional/allopathic/orthodox).

What two claim forms are the most common in healthcare?

As a medical billing company for various doctors and facilities, we understand that knowing which form to use is the first step to filing a successful claim. UB-40 and CMS-1500 are the two most common claim forms for submitting to insurance companies.

What is the most common type of medical expenses coverage?

Answer: The commonest form of health insurance policies in India cover the expenses incurred on Hospitalization, though a variety of products are now available which offer a range of health covers, depending on the need and choice of the insured.

What are the two formats used for medical billing?

Healthcare providers may follow two types of medical billing: institutional and professional. How these two medical billing systems process claims can vary vastly. This guide explores these two medical billing systems in more depth, including HIPAA in medical billing.

What are the two types of claims forms?

The two most common claim forms are the CMS-1500 and the UB-04. These two forms look and operate similarly, but they are not interchangeable. The UB-04 is based on the CMS-1500, but is actually a variation on it—it's also known as the CMS-1450 form.

What are the two forms of medical codes?

Typically, you'll find both ICD codes and CPT codes in a medical bill. The ICD codes denote your diagnosis and are used on hospital records, medical charts, visit summaries, bills and other patient paperwork to ensure the proper delivery of medical care.

What are the two types of forms used for health services billing?

The CMS 1500 form and the UB-04 form are two different types of medical claim forms used for submitting claims to insurance companies. While they serve similar purposes, they are designed for different types of healthcare providers and services.

What types of billing systems are there?

Here are some types of one-time billing:
  • Point of sale (POS) billing.
  • Electronic invoicing.
  • Pay-per-use billing.
  • Fixed-fee billing.
  • Milestone billing.
  • Time and materials billing.

How many types of CPT codes are there in medical billing?

With CPT, 'Category' refers to the division of the code set. CPT codes are divided into three Categories. Category I is the most common and widely used set of codes within CPT.

What are the two most common types of healthcare insurance programs?

Before choosing a health insurance policy for yourself, your family, or your employees, you must know what types are available. Some popular health insurance policy options are: Preferred provider organization (PPO) plans. Health maintenance organization (HMO) plans.

What is the most widely used claims made form?

The most widely used is the Claims-Made & Reported Form, which requires that the claim be lodged during the policy period, and reported during this same period of the policy.

What is a form in medical billing?

Medical billing claims forms are used to bill payers for all aspects of patient care. Medical billers fill out these forms, which are most frequently submitted electronically, but may, under some circumstances, be submitted in hard copy, or paper, form.

What are the two main types of healthcare policy?

Consumers can buy health insurance policies as either "Group" or "Individual/Family" policies.

Do doctors prefer HMO or PPO?

HMO plans might involve more bureaucracy and can limit doctors' ability to practice medicine as they see fit due to stricter guidelines on treatment protocols. So just as with patients, providers who prefer a greater degree of flexibility tend to prefer PPO plans.

What are the two types of medical practices?

Before launching down a career path, review the four types of medical practice below to identify which one might best fit your long-term goals.
  • Private practice. ...
  • Group practice. ...
  • Hospital employment. ...
  • Locum tenens.

What are the two most common sources for a bill?

Although a bill's sources are unlimited, the two most common points of origin are Members and their constituents. For example, a bill may be inspired by campaign promises made by Members. Or constituents with ideas for laws may contact their Congressional Representatives.

What is the type of bill?

Classification of Bills based on Passage Procedure. Ordinary Bills. Money Bills. Financial Bills. Constitutional Amendment Bills.

What two groups may propose a bill?

The idea for a bill can come from a sitting member of the U.S. Senate or House of Representatives or be proposed during their election campaign. Bills can also be petitioned by people or citizen groups who recommend a new or amended law to a member of Congress that represents them.