The Following Statements Are About the Financial Risks for Health

The following statements are about the financial risks for health plans in Medicare and Medicaid markets. Three of these statements are true, and one statement is false. Select the answer choice containing the FALSE statement.

A) One reason that health plans in the Medicare and Medicaid markets experience financial risk is that government regulations determine which services must be provided to Medicare and Medicaid enrollees.
B) Effective use of hospital utilization is the single most likely factor to contribute to the success of a Medicare-contracting health plan.
C) If a Medicare-contracting health plan is a provider-sponsored organization (PSO) , it is prohibited from sharing financial risk with its providers.
D) Typically, providers are more reluctant to accept financial risk in connection with providing services to the Medicaid population than with providing services to the Medicare population.