One true statement about a type of capitation known as a percent-of-premium arrangement is that this arrangement

Question

Quizplus · Accepted Answer

A percent-of-premium arrangement transfers some of the risk associated with underwriting and rating from a health plan to a provider. This means that the provider is responsible for managing the cost of care for their assigned patients, which can result in financial gain or loss depending on the utilization of healthcare services. This arrangement is therefore less attractive to providers when the arrangement sets provisions to limit risk. While it is a common type of capitation, it does not set provider reimbursement at a specific dollar amount per plan member.

One True Statement About a Type of Capitation Known as a Percent-Of-Premium