How Does Risk Adjustment Affect Payments to Managed Care Plans

question 5

Multiple Choice

How does risk adjustment affect payments to managed care plans?

• A)Risk adjustment shifts risk from the payer to the MCO
• B)Risk adjustment takes into account the enrollees' health status
• C)Risk adjustment provides an incentive for improving quality
• D)Risk adjustment reduces out-of-pocket costs for the enrollees

---

Definitions:

Hippocampus

A major component of the brain within the temporal lobe, playing significant roles in the consolidation of information from short-term to long-term memory and spatial navigation.

Memory

The cognitive process involving the encoding, storing, and retrieving of information, which plays a critical role in learning and consciousness.

Existentialist

Related to existentialism, a philosophy that emphasizes individual existence, freedom, and choice.

Own 'Being'

A philosophical or existential concept referring to the essence or nature of an individual’s existence or identity.