Final answer:
A Compliance plan is essential for managing the risk associated with coding and billing regulations for Medicare, Medicaid, and other government healthcare programs, as it ensures adherence to all legal and ethical standards.
Step-by-step explanation:
The instrument of risk management that is particularly beneficial for following coding and billing regulations for Medicare, Medicaid, and other government plans is C) Compliance plan. A compliance plan sets forth the procedures and practices required for a healthcare entity to abide by all legal and ethical standards.
Adherence to such a compliance plan ensures that the healthcare provider follows the coding and billing regulations, thereby reducing the chances of moral hazard and minimizing the risk of penalties associated with non-compliance. The Patient Protection and Affordable Care Act (ACA or Obamacare) has introduced several regulations to control healthcare costs, like switching to electronic medical records (EMRs) which are directly related to the administrative aspects covered by compliance plans.