Capitation is a medical cost-control strategy that
A)limits the number of patients covered on a group policy.
B)increases the employee-paid portion of an employer-provided policy based on the employee's number of dependents.
C)sets a monthly amount that a physician can earn from any individual patient covered under the policy.
D)limits the number of visits an insurance company will pay for with any single diagnosis.

Question

Quizplus · Accepted Answer

Capitation sets a monthly amount that a physician can earn from any individual patient covered under the policy. This encourages physicians to provide preventive care and reduce unnecessary treatments, as they are not paid extra for additional visits or procedures. It is a cost-control strategy used by health insurance companies to encourage efficient use of healthcare services.

Capitation Is a Medical Cost-Control Strategy That