When the Medicare and Medicaid programs were created in the 1960s, medical services were paid for almost entirely on a fee-for-service basis. For example, Medicare would pay a certain amount for a check-up in a physician’s office, another amount for a physician’s reading of an X-ray film, and so on (less any applicable co-pay or deductible). Most private insurers paid for medical services this way for generations, and fee-for-service would continue to be the payment method of choice for many more years to come.
This fee-for-service model has been fraught with problems. It provided incentives to health care providers to over-utilize services, encouraged episodic rather than coordinated care, and it has been a significant factor in the ever-escalating costs of health care services. It also gave rise to many varieties of fraudulent and unethical practices that not only harmed patients but drained massive amounts of money from the Medicare and Medicaid programs.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
