Advance

An agreed percentage increase applied to the total invoice plus freight for unknown expenses at the time of shipment and also for a portion of the insured’s profit.

Advance Beneficiary Notice (ABN)

Agreement given to the patient to read and sign before rendering a service if the participating physician thinks that it may be denied for payment because of medical necessity or limitation of liability by Medicare. The patient agrees to pay for the service. ABNs only apply if the patient is in the original Medicare program. They do not apply if the patient is in a Medicare managed care plan or private fee-for-service plan. May be referred to as an ABN-G (i.e., ABNs used by providers, physicians, practitioners, and suppliers). An ABN is also known as a waiver of liability agreement, responsibility statement , or notice of noncoverage. ABN-L refers to ABNs used when only laboratory services are being delivered. HHABN is an ABN used for home health services.

Advance directive

As specified in the Patient Self-Determination Act, this is a legal document prepared by an individual that gives directions about his or her wishes in the event he or she becomes incapacitated and not able to make decisions. It designates a person to make medical decisions. An advance directive includes such documents as do-not-resuscitate (DNR) order, durable power of attorney, right to die document, and living will. Also called health care advance directive or living will.

Advance Freight

Partial payment of freight charged in advance.

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UK: Freight paid in advance by cargo owners to shipowners on the basis that it is ‘not repayable in case of loss. The cargo owner insures the risk by merging the advance freight with the value of the goods. Unless arranged in this way, English law insists that freight is only payable on right delivery of the goods. A charterer may also insure advance freight.

 

 

Advance funding

Generally, designating money to fund future benefits. Commonly used in pensions to fund eventual retirement.

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Process in which an employer who is sponsoring a pension plan deposits money in a fund during the participants’ working years to guarantee payment of pension benefits to the plan’s participants when they retire.