Question

Which include payments made directly or indirectly to health care providers to encourage a reduction or limitation of services to save money for the managed care plan?

a. physician incentives
b. risk contracts
c. capitation
d. point-of-service plans

Answer 1

Payments made to healthcare providers to encourage the reduction of services to save money for managed care plans are known as physician incentives. These incentives are common in HMOs and aim to reduce unnecessary services while maintaining care quality.

Step-by-step explanation:

The type of payments made directly or indirectly to health care providers to encourage a reduction or limitation of services to save money for the managed care plan are known as physician incentives. These incentives align with the system used by health maintenance organizations (HMOs), where providers are paid a fixed amount per patient.

In contrast to traditional fee-for-service models where providers are paid based on the services they render, physician incentives encourage cost savings by reducing services that may not be strictly necessary. This approach aims to mitigate the moral hazard by aligning the incentives of providers with the goal of managing costs effectively while maintaining quality care. However, providers must still ensure that limiting care does not lead to worse health outcomes and higher costs in the future.