What Is the Main Difference Between Capitated Pay and Fee-For-Service

question 4

Multiple Choice

What is the main difference between capitated pay and fee-for-service pay?

• A)Entity controlling the service and fees
• B)Amount of reimbursement
• C)Type of health care providers who can participate
• D)The selection of beneficiaries by the insurer

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Definitions:

Potential Entrant

Refers to a business or company that is not currently in a market but has the capability and interest to enter the market if certain conditions are met.

Dominant Strategy

A strategy in game theory that yields the best outcome for a player regardless of what strategies other players choose.

Nash Equilibria

A situation in a non-cooperative game where no player can benefit by changing strategies, assuming the other players also don't change their strategies.

Maximin Strategy

A decision rule in game theory that aims to maximize the minimum gain possible from a set of strategies.