Reimbursement in Physical Therapy Practice - Week 5 Flashcards
Retrospective method of Payment
• AFTER services are provided
(dependent on setting that PT services are provided)
• Known as “fee-for-service” or indemnity plans
–> Individual paid fee for health services provided similar to any other purchase of goods or services
- Fees paid are based on what is “usual, customary and reasonable” (UCR) for that area and service.
- Health care providers established their own fees (fee schedule) that specified the cost of their services.
- Providers had little incentive to limit services or costs
Prospective method of Payment
• BEFORE services are provided
(dependent on setting that PT services are provided)
- Rising costs of health care created need to set limits on what services would be covered and how much would be paid those services
- Prospective payment system (PPS): payments are established before care is provided
- Fees and services covered set by insurance companies to control payments for high costs of health care
- Providers paid these amounts regardless of the costs they actually incur
- Health care choices now being influenced by insurance companies
What were the driving forces behind The Health Maintenance Organization Act?
↑ control of the delivery of health care by third-party payers through government-mandated regulations of health care service = MANAGED CARE
• Predetermined payment schedule for covered services (discounted fee schedule)
Managed Care:
Predetermined payment schedule
payment schedule for covered services (discounted fee schedule)
Managed Care: Provider network (panel)
Providers who sign a contract with insurance company and agree to the payment schedule
Managed Care:
Established managed care organizations (MCOs)
Restrict access to services by limiting the types of, number of, or payment for services covered
MANAGED CARE PROVISIONS
• Features within health plans that provide insurers with a way to manage the cost, utilization, and quality of health care services received by members
Pre-admission certification
MANAGED CARE PROVISIONS
- before being admitted have to be certified to receive service
Utilization Management/Review
MANAGED CARE PROVISIONS
- medical necessity, appropriateness, and reasonableness of services proposed or provided services to a patient or group of patients to reduce the incidence of unnecessary +/or inappropriate provision of services
- -> Prospective, Concurrent, Retrospective
Case Management
MANAGED CARE PROVISIONS
- Cost-control process for patients with high-cost medical conditions
Maximum plan dollar limit
MANAGED CARE PROVISIONS
- (caps) often combined with other rehabilitative services
↑cost-sharing
MANAGED CARE PROVISIONS
- amount copay ect. are often higher for pt w/ managed care plans
Health Maintenance Organization
HMO
Managed Care Organizations
• A health care system that assumes both the financial risks associated with providing comprehensive medical services (insurance and service risk) and the responsibility for health care delivery in a particular geographic area to HMO members, usually in return for a fixed, prepaid fee
• Subscriber sees a PCP, “Gatekeeper”, who coordinates all care including referrals for specialists
Preferred Provider Organization
PPO
Managed Care Organizations
• An indemnity plan which provides coverage to participants through a network of selected health care providers (such as hospitals and physicians). The enrollees may go outside the network, but would incur larger costs in the form of higher deductibles, higher coinsurance rates, or non-discounted charges from the providers.
Exclusive Provider Organization
EPO
Managed Care Organizations
• More restrictive PPO plan
• Enrollees must use providers from the specified network of physicians and hospitals to
receive coverage
• No coverage for care received from a non-network provider except in an emergency
situation