Which of the Following Best Describes the First Government Step

question 6

Multiple Choice

Which of the following best describes the first government step in trying to stop constantly rising costs?

• A) Insurance companies were told to cease adding new members to their plan.
• B) Payment reimbursement was based on diagnosis and client characteristics rather than on treatment given.
• C) Physicians were limited to a maximum amount that would be paid for any particular service.
• D) Reimbursement was based on prospective payment; that is, in advance of admittance for care.

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Definitions:

Cash Flow Assessment

The evaluation of how well a company generates cash to pay its debt obligations and fund its operating expenses.

Credit Risk

The risk that a borrower will default on any type of debt by failing to make required payments.

Operating Cash Flow

Cash generated from the core business operations of a company, excluding financing and investing activities.

Cash Outlays

Refers to the actual disbursement of cash, including expenses, investments, and any other payments made by a business or an individual.