In Per Case Reimbursement

question 21

Multiple Choice

In per case reimbursement

• A) All risk resides with the insurer
• B) Cost risk resides with provider and utilization and actuarial risk resides with the insurer
• C) Cost and utilization risk resides with provider and actuarial risk resides with the insurer
• D) All risk resides with the provider

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Definitions:

Required Rate of Return

The required rate of return is the minimum annual percentage return an investor expects to achieve from an investment, considering the risk associated with it.

Payback Rule

An investment appraisal technique that calculates the time required to recoup the cost of an investment, focusing on cash flow rather than profitability.

Pre-Specified Number

A value or quantity that is defined or agreed upon before it is used or applied.

Calculated Payback Period

The duration required for an investment to produce income or cash flow equal to the investment's initial cost.