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Title
Preferred provider organizations and physician fees.
First Author
Verrilli, Diana K
Date of Pub
1996 Spring
Pages
161-170
Volume
17
Issue
3
Other Authors
Zuckerman, Stephen
Abstract
Preferred provider organizations (PPOs) represent a form of managed care in which providers agree to accept discounted fees in exchange for the expectation that their patient volume will increase or at least be maintained. Managed care plans that rely on discounted fee-for-service (FFS) payments have increased from about 10 plans in 1981 to over 700 plans in 1994. In this study, we document levels of discounts achieved by two large national insurers and discuss how the size of the discount varies by type of service and how the discounted rates relate to Medicare fees. Our results show that, despite achieving large discounts (approximately 10 20 percent) relative to their indemnity plans, the two nationwide PPOs studied here pay at rates substantially above Medicare levels.
Abstract Continued
N/A
MeSH
Comparative Study : Fee-for-Service Plans/classification/economics : Fees, Medical : Health Care Costs/classification : Insurance Claim Review : Insurance, Health/economics : Medicare Part B/economics : Office Visits/economics : Physicians/economics : Preferred Provider Organizations/classification/economics : Relative Value Scales : Support, U.S. Gov't, Non-P.H.S. : United States
NTIS Number
PB99-106510