The payment mechanism that Medicare uses within its health care financ

The payment mechanism that Medicare uses within its health care financing is:

1. Capitation
2. Fixed payments
3. Direct contracting
4. Prospective payment

ANSWER

ANS: 2
Inpatient hospital services for Medicare clients are reimbursed a set amount for each DRG, re-gardless of the client’s length of stay or use of services in the hospital.
Capitation is the payment mechanism in which providers receive a fixed amount per enrollee of a health care plan.
The payment mechanism that Medicare uses is not direct contracting.
Medicare is not based on fixed payments, but rather on a set dollar amount according to the DRG.