Which term describes a plan in which providers are paid a fixed amount to deliver care?

Which term describes a plan in which providers are paid a fixed amount to deliver care?

• A. Managed Care
• B. Prepaid Plan
• C. Primary Care Provider
• D. Integrity

Answer: (B)

In healthcare financing, a prepaid plan describes a setup where providers are paid a fixed amount to care for a patient or group of patients over a set period. This upfront payment, often called capitation, covers a defined range of services, regardless of how many services the patient uses. Because the payment isn’t tied to individual services, it encourages providers to deliver efficient, preventive care and manage costs carefully. Managed care is the broader system that can use prepaid capitation as one method of payment, but the specific term that describes the fixed-amount plan is prepaid plan. A primary care provider is a clinician who coordinates care, not a payment arrangement. Integrity is unrelated to payment models.

In healthcare financing, a prepaid plan describes a setup where providers are paid a fixed amount to care for a patient or group of patients over a set period. This upfront payment, often called capitation, covers a defined range of services, regardless of how many services the patient uses. Because the payment isn’t tied to individual services, it encourages providers to deliver efficient, preventive care and manage costs carefully. Managed care is the broader system that can use prepaid capitation as one method of payment, but the specific term that describes the fixed-amount plan is prepaid plan. A primary care provider is a clinician who coordinates care, not a payment arrangement. Integrity is unrelated to payment models.