The HMO Managed-Care Model Is Distinguished from the Traditional Fee-For-Service

question 16

Multiple Choice

The HMO managed-care model is distinguished from the traditional fee-for-service model by: ​

• A)combining delivery and financing into one system.
• B)allowing the consumer to negotiate the fee for each service.
• C)organizing care based on the efficiency of the providers.
• D)billing the consumer separately for each service provided.

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Definitions:

Variable Cost Percentage

The ratio of variable costs to sales, used to assess how costs change in relation to changes in a business's sales volume.

Fixed Costs

Costs that do not fluctuate with the level of production or sales, such as rent, insurance, and salaries.

Sales Dollars

The total monetary value of sales transactions completed within a specific period.

High-Low Method

A technique used in managerial accounting to estimate fixed and variable costs associated with production.