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CHP 465Reading: Understanding Health Policy: A Clinical Approach (Chapter 4 & 5)1.Explain each mode of physician reimbursement: fee-for service, episode of illness, capitation, and salary.2.How does capitation payment free insurers of risk?3.What are some advantages of a primary-care-based health care system?
were used. That also includes any follow up doctor visits. A patient could gofor follow up visits with their physicians 5 times after their procedure butthey will not receive pay for those visits because the pay for those visitshave been bundled up into the same payment as the procedure. Capitation payments are payments that the insurance companies payto physicians that are give care to patients that belong to that insurer. Thephysician is paid per person that the physician sees with the intention oftransferring financial risks from the insurer to the physician. Throughcapitation, insurance companies are able to free themselves of financial riskbecause the amount that the HMO is paying is fixed. The amount that theypay is solid and cannot change not matter how sick the patient is or howmuch treatment they may require. The physicians who get paid through