The fee-for-service system already creates incentives for doctors to do the more costly thing.
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Fee-for-service plans--with their equally problematic incentives for doctors to provide too much costly treatment--continue to shrink.
The first is that it includes only patients in traditional fee-for-service Medicare, not Medicare Advantage.
The runaway factor here is the fee-for-service reimbursement system that predominates in private and public insurance plans.
Doctors in public hospitals are salaried whilst those in private hospitals are paid on a fee-for-service basis.
Local firms have tried various methods, ranging from cash up-front and pre-paid tokens to fee-for-service or leasing.
Heidelberger Druck, by contrast, charges a flat fee-for-service, which can be cheaper for most commercial printers and less hassle.
Fee-for-service reimbursement needs to be replaced by high-deductible insurance and health savings accounts.
The widespread replacement of fee-for-service medicine with managed care led to a period of much lower health care cost growth.
Managed care has largely achieved one-time savings by squeezing out irrationalities and high margins from the traditional fee-for- service system.
Under the old fee-for-service system, doctors had no financial interest in keeping healthy people out of their surgeries quite the opposite.
Nobody thinks it will be possible to scrap managed care and go back to total reliance on the old fee-for-service system.
Under the old fee-for-service system, insured Americans could demand almost any treatment they wanted, with little regard for cost or efficacy.
Under fee-for-service in America, only about three-quarters of children under two are inoculated against diphtheria, tetanus, measles, mumps, rubella and polio.
For example, with our fee-for-service system, providers get paid more to do more, and some of these organizations represent the providers.
Yet for the past several years enrollment has climbed at an 8% to 10% clip annually, versus 3% for normal fee-for-service Medicare.
New York is moving away from a fee-for-service system for Medicaid patients suffering from chronic illnesses, to one based on patient outcome.
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In China, subsidies were reduced and a fee-for-service system introduced when control over health services was loosened under economic reforms in the 1980s.
The heart of the Wyden-Ryan plan is to use competitive bidding to allow private insurers to compete with traditional, 1965-vintage fee-for-service Medicare.
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The current fee-for-service system is blamed for overutilization and overpaying for certain intense therapies provided by specialists, and underpaying for primary and preventive care.
Patient experience, convenience and quality of care do not effect, or at least significantly effect, clinical reimbursement in the standard, traditional fee-for-service Medicare program.
It funnels federal Medicare dollars to private plans that are considerably more expensive per capita (by roughly 10%, historically) than the standard Medicare fee-for-service outlays.
Many other states are looking at shifting their dual eligible populations to either the fully capitated system that California has adopted or managed fee-for-service plans.
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Medicare has many other flaws such as its encouragement of open-ended, fee-for-service benefits a model that nearly all employer health plans abandoned more than a decade ago.
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The changes emphasize managed care over fee-for-service care, with a goal of having nearly the entire Medicaid population under some kind of managed care by 2014.
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The 2.2-percentage-point reprieve is the result of HHS's decision to base Medicare Advantage payments on the law rather than a political gimmick to favor traditional fee-for-service Medicare.
If you were to rank the worst products currently sold by HMOs, these limited benefit plans would have to be up there with Fee-For-Service Medicare Advantage plans.
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In addition, doctors and hospitals need to move away from fee-for-service medicine so they have further incentives to operate more efficiently and therefore improve their health IT.
Indeed, they are some of the most forward-thinking institutions when it comes to managing a patient holistically, versus compensating doctors operating in discrete silos on a fee-for-service basis.
While they are a step toward a pay-for-performance system, they have not entirely shed the yoke of the fee-for-service model that is currently employed by government-funded health programs.
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