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Questions and Answers
What is a primary reason that healthcare insurance companies became involved with healthcare costs?
Which of the following statements regarding healthcare benefits is correct?
What is a health insurance premium for an employee with two children, based on the scale provided?
When seeking healthcare benefits, what is an important factor to consider?
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What additional coverage might incur extra premiums deducted from an employee's paycheck?
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What factors can lead to a provider not renewing their contract with a managed care company?
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What is one potential consequence of not meeting established deadlines in patient care?
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How do managed care companies typically determine reimbursement rates for healthcare providers?
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What happens if a patient chooses to see a provider that is 'out of network'?
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What is a common problem that practices face when managing billing and insurance requirements?
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Why do managed care companies employ personnel to negotiate contracts with hospitals?
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In a self-employed practice, which cost would be considered part of overhead?
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What can occur if group practices do not hold regular business meetings?
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How long can it take for managed care companies to process reimbursements after a patient visit?
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What usually occurs when managed care companies make payment changes?
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What does the member ID on the healthcare coverage ID card identify?
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What are employers primarily concerned with regarding healthcare premiums?
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What is a deductible?
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How often is the provider and managed care contract valid?
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What is generally required when joining a provider group?
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What is a co-pay?
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What happens if a provider is not accepted into a managed care plan?
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What amount is typically shared equally between employees and employers for healthcare premiums?
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What usually happens after a provider submits their application to a managed care company?
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What is typically included in the provider contract?
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What is the primary reason health insurance companies emphasize managing costs within healthcare?
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What determines whether an employee's spouse can obtain healthcare benefits through their work?
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Which of the following accurately describes the impact of layoffs on healthcare benefits for employees?
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Which factor is NOT typically considered when determining the scale of healthcare premiums for employees?
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What additional form must an employee fill out if they wish to obtain dental coverage?
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What is a typical financial arrangement between an employee and employer regarding healthcare premiums?
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What must a provider submit along with their application to a managed care company?
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What best describes a deductible in the context of healthcare insurance?
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What is a common co-pay amount for outpatient services?
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How frequently must the provider and managed care contract be renewed?
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What might be included in the managed care provider contract regarding malpractice?
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What happens once the legal contract with a managed care company is signed?
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What is considered a bridge service regarding healthcare coverage?
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What is a crucial step prior to submitting an application to a managed care company?
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What does the ID number on the healthcare coverage card signify?
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What is a possible consequence of hiring too many office staff in a healthcare practice?
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Which of the following statements best describes the relationship between managed care companies and providers?
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How do managed care companies maintain their networks of providers?
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What is one of the main reasons for delays in reimbursement from managed care companies?
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Why might a patient incur higher costs when seeing an 'out of network' provider?
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What difficulty arises when a patient needs a procedure that is referred by a primary care physician?
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What type of billing practices can jeopardize a provider's relationship with managed care companies?
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What is essential for group practices to avoid rapid turnover in positions?
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Which factor is primarily influenced by managed care companies in determining provider payment?
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Study Notes
Managed Care: Overview
- Managed care companies manage healthcare costs for their members, typically obtained through employer-sponsored plans.
- Most individuals obtain health insurance through their employment.
- Employers often negotiate with managed care companies to lower costs by sharing premiums with their employees.
Managed Care Plans and Benefits
- Managed care plans are typically divided into categories, e.g., employee-only, employee + spouse, employee + one child, etc.
- Employees pay healthcare premiums through payroll deductions.
- Dental and vision coverage are often optional and require additional premiums.
Member Identification
- Members receive an ID card with a group number (identifying the employer plan) and a member ID (identifying the individual).
Deductibles
- Deductibles are the amount a patient must pay out-of-pocket before coverage begins.
- Deductibles are negotiated between the employer and the managed care company.
Co-Pays
- Co-pays are fixed amounts paid at the time of service, often for outpatient visits.
- Negotiated between the employer and managed care company.
Provider Network
- Providers must contract with managed care companies to participate in their network.
- Providers must meet various requirements to receive payment from managed care companies, including:
- Submitting copies of licenses and qualifications
- Providing references
- Undergoing background checks
- Signing a comprehensive contract outlining terms of service
- Providing malpractice insurance information
- Providers must adhere to managed care company guidelines, including billing practices and appointment scheduling.
Reimbursement Rates
- Managed care companies establish reimbursement rates for contracted providers based on standardized codes.
- Reimbursement rates are subject to change, potentially impacting provider income.
- Managed care companies typically negotiate contractually with hospitals to reduce healthcare costs further.
Challenges in Managed Care
- Managed care companies require providers to submit extensive documentation and adhere to specific guidelines, adding administrative burden.
- Profit margins for providers, especially in private practice, can be significantly affected by reimbursement rates and unpredictable patient volume.
- The potential for delayed reimbursement and the need to carefully manage overhead costs are crucial for provider financial stability.
- Group practices benefit from regular business meetings to ensure transparency, and proper decision-making.
Managed Care
- Managed care companies emerged due to rising healthcare costs.
- Most individuals receive healthcare benefits through employment, with full-time workers being eligible.
- Healthcare premiums are deducted from employees' paychecks and typically increase based on the number of dependents covered.
- Healthcare coverage includes medical and mental health benefits, with dental and vision being optional at an additional cost.
- Employees receive healthcare coverage ID cards with unique group and member numbers.
- Employers negotiate premiums with managed care companies to minimize costs for both employees and themselves.
- Deductibles are the amount patients must pay before insurance coverage begins.
- Co-pays are fixed payments made at the time of service, typically for outpatient care.
- Providers must apply to join managed care networks, providing documentation and undergoing a background check.
- Provider contracts outline the terms of participation, including malpractice insurance requirements.
- Managed care companies do not advertise participating providers, leaving it to patients to find in-network options.
- Provider contracts are typically valid for one year and require renewal, which involves verifying licenses and meeting deadlines.
- Providers may lose their contracts with managed care companies for reasons such as disciplinary actions, non-compliance, or billing fraud.
- Private practices face challenges with billing processes, reimbursement delays, and income variability.
- Group practices require regular business meetings to ensure transparency and cohesion.
- Managed care companies are responsible for maintaining networks of providers.
- Patients who see providers outside of their managed care network ("out of network") may face higher out-of-pocket costs.
- Hospitals negotiate reimbursement rates with managed care companies, which can vary slightly.
- Managed care companies have contracted relationships with hospitals and providers, which can create complexities for patients.
- Common challenges for providers include excessive administrative burdens related to billing and insurance.
- Late submission of billing information can result in non-payment.
- Private practices have greater financial uncertainty compared to salaried positions due to variable patient volume.
- Overhead costs include employee salaries and other operating expenses.
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Description
This quiz provides an overview of managed care, focusing on how healthcare costs are managed for members through employer-sponsored plans. It covers the various types of managed care plans, member identification processes, and the role of deductibles in healthcare coverage.