Answer :
Final answer:
In managed care plans, 'capitation' is the method used to shift financial risk back to providers, where they are paid a set amount per patient regardless of services used, encouraging cost-effective care.The correct answer is b. capitation.
Explanation:
The method that managed care plans often use to shift financial risk back onto providers is capitation. This system involves paying a provider a set amount for each enrolled person assigned to them, per period of time, whether or not that person seeks care. It is a part of the broader effort to improve cost effectiveness and efficiency in the healthcare system.
In Health Maintenance Organizations (HMOs), providers are incentivized to focus on preventive care and cost management, as they receive a fixed annual fee per patient. This contrasts with the fee-for-service model, where providers are reimbursed according to the cost of services provided, which may lead to less emphasis on cost containment. Capitation is thus a significant feature of HMOs and other managed care organizations aimed at controlling healthcare expenditures while encouraging efficient and effective patient care.
