What is the purpose of an Advance Beneficiary Notice of Noncoverage (ABN)?

The purpose of an Advance Beneficiary Notice of Noncoverage (ABN) is specifically to provide information regarding non-covered services. When a healthcare provider believes that a service or procedure may not be covered by Medicare, they must issue an ABN to the patient before the service is rendered. This document informs the patient that Medicare might deny payment for the service, outlining the reasons for the denial and allowing patients to decide whether they want to proceed with the service knowing they will be responsible for the costs if Medicare does not cover it.

This notice plays a critical role in ensuring that patients are aware of potential financial responsibilities before they receive care, which can influence their decision-making concerning their treatment options. The ABN helps prevent unexpected bills for services that the patient may have assumed would be covered, thereby promoting transparency in healthcare billing.

The other options, although related to patient rights and Medicare policies, do not accurately capture the primary function of the ABN, which is focused on informing about non-coverage specifically.