The Following Statements Are About Fee-For-Service (FFS) Payment Systems

question 92

Multiple Choice

The following statements are about fee-for-service (FFS) payment systems. Select the answer choice containing the correct statement:

• A) A discounted fee-for-service (DFFS) system is usually easier for a health plan to administer than is a fee schedule system.
• B) A case rate payment system offers providers an incentive to take an active role in managing cost and utilization.
• C) One reason that health plans use a relative value scale (RVS) payment system is that RVS values for cognitive services have traditionally been higher than the values for procedural services.
• D) One reason that health plans use a resource-based relative value scale (RBRVS) is that this system includes weighted unit values for all types of procedures.

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Definitions:

Prepaid Rent

An expense that has been paid in advance and is considered an asset until the benefit of the payment is consumed.

Rent Expense

An expense incurred from occupying rental property or equipment for business operations.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate periods, ensuring that revenues and expenses are matched.

Accumulated Depreciation

The complete value of a physical asset's price that has been charged as an expense from the time the asset started being utilized.