
Definition of capitated : of, relating to, participating in, or being a health-care system in which a medical provider is given a set fee per patient (as by an HMO) regardless of treatment required First Known Use of capitated
Full Answer
What does capitation stand for?
cap· i· tat· ed | \ ˈka-pə-ˌtā-təd \ Definition of capitated : of, relating to, participating in, or being a health-care system in which a medical provider is given a set fee per patient (as by an HMO) regardless of treatment required First Known Use of capitated 1983, in the meaning defined above History and Etymology for capitated
What does covered under capitation mean?
Medical Definition of capitated. : of, relating to, participating in, or being a health-care system in which a medical provider is given a set fee per patient (as by an HMO) regardless of the treatment required. Click to see full answer.
What does capitate mean?
capitation. Capitated payment Managed care. 1. A method of payment for health services in which a physician or hospital are paid a fixed amount is paid per enrollee to cover a defined …
What is a capitated plan?
Mar 03, 2022 · What Does The Term Capitation Mean? A capitation is a tax imposed directly on the head or person by a central authority. Number of people who pay or receive a uniform fee or payment. health-care system at the nation’s level.

What does it mean when a patient is capitated?
Definition of capitated : of, relating to, participating in, or being a health-care system in which a medical provider is given a set fee per patient (as by an HMO) regardless of treatment required.
What does it mean when an insurance is capitated?
A capitated contract is a health care plan that pays a flat fee for each patient it covers. Under a capitation agreement, the doctor is paid a fixed monthly rate in exchange for offering their services to plan members at a reduced or no cost.
What does the term capitation mean?
Definition of capitation 1 : a direct uniform tax imposed on each head or person : poll tax. 2 : a uniform per capita payment or fee. 3 : a capitated health-care system.Mar 14, 2022
What is an example of capitation?
A capitation example would be an IPA—a type of HMO—that has 5,000 patients. The IPA needs to secure insurance coverage for its patients for the upcoming year. Thus, it would enter into a capitation contract with a physician. The physician would be paid a fixed payment to treat all 5,000 patients.
Are PPO plans capitated?
Whether youre aware of it or not, most physician groups participating in preferred provider organization (PPO) contracts with insurers are capitated — even though the contracts are presented as discounted fee for service (FFS).Apr 1, 1999
What is capitation denial in medical billing?
When this denial occurs from other payers and CPT is covered under Capitation then it is processed under contract where a fixed amount has been decided to pay to the provider then this claims should be written off.Dec 30, 2019
What does non capitated mean?
In a non-capitated system, an insurance company pays doctors based on the actual medical services provided. While some health insurance plans pay medical providers based on a capitation basis, other providers pay on a non-capitated basis.Mar 23, 2022
How does capitation denial work?
To resolve the denial issue follow the steps below:Understand from the patient to verify whether Medicare is primary or secondary insurance.Keep all the insurance information on the files up to date once the verification is complete.Contact the patient or the COB itself to verify.More items...•Jun 2, 2021
What is offset in medical billing?
This is a kind of an adjustment which is made by the insurance when excess payments and wrong payments are made. If insurance pays to a claim more than the specified amount or pays incorrectly it asks for a refund or adjusts / offsets the payment against the payment of another claim. This is called as Offset.Sep 5, 2010
What are the three type of capitation?
There are three main kinds of capitation models: primary care, secondary care, and global capitation.Feb 16, 2021
How are patients affected by capitated payments?
A capitated payment model may include provider incentives if physicians reduce costs, lower utilization, and improve patient outcomes, but typically offer less flexibility than other alternative payment structures. Payers sometimes create a risk pool for providers in by withholding a certain percentage of payments.Aug 29, 2018
What is capitated billing?
Capitation is a type of a healthcare payment system in which a doctor or hospital is paid a fixed amount per patient for a prescribed period of time by an insurer or physician association.Feb 23, 2020
What is capitation in healthcare?
1. A method of payment for health services in which a physician or hospital are paid a fixed amount is paid per enrollee to cover a defined scope of services for a defined population set–aka covered lives for a defined period of time, regardless of actual number or nature services provided ; capitation may be used by purchasers ...
What is capitulation in medical?
cap·i·ta·tion. A system of medical reimbursement wherein the provider is paid an annual fee per covered patient by an insurer or other financial source, which aggregate fees are intended to reimburse all provided services.
What is aggregate fee?
A system of medical reimbursement wherein the provider is paid an annual fee per covered patient by an insurer or other financial source; the aggregate fees are intended to reimburse all provided services.
What is a poll tax?
A poll tax. 2. A payment or fee of a fixed amount per person, such as one remitted at regular intervals to a medical provider by a managed care organization for an enrolled patient. cap′i·tate′ v. cap′i·ta′tive adj. The American Heritage® Medical Dictionary Copyright © 2007, 2004 by Houghton Mifflin Company.
What is dental reimbursement?
A system of dental reimbursement wherein the health care provider is paid an annual fee per covered patient by an insurer or other financial source, which aggregate fees are intended to reimburse all provided services.
What does it mean when a claim is capitated?
Capitation is a type of a healthcare payment system in which a doctor or hospital is paid a fixed amount per patient for a prescribed period of time by an insurer or physician association.
What does it mean when an insurance is capitated?
A capitated contract is a healthcare plan that allows payment of a flat fee for each patient it covers. Under a capitated contract, an HMO or managed care organization pays a fixed amount of money for its members to the health care provider.
What is capitation based funding?
Bundled payments are compared to a fee-for-service mechanism (whereby payment is made based on services provided) and to capitation ( whereby providers are paid a sum independent of how many services they provide ). Also referred to as global payment and episode payment.
What does the term capitated mean?
Definition of capitated : of, relating to, participating in, or being a health-care system in which a medical provider is given a set fee per patient (as by an HMO) regardless of treatment required.
What are advantages of capitated payments for providers and payers?
It makes costs much more predictable for payers, and gives the doctors and other providers a more predictable monthly cash flow. It can be simpler administer – a fee per patient rather than complicated billing and elaborate coding for every visit and procedure.
Are PPO plans capitated?
Whether youre aware of it or not, most physician groups participating in preferred provider organization (PPO) contracts with insurers are capitated — even though the contracts are presented as discounted fee for service (FFS).
What is a capitated payment model?
Capitation payments are payments agreed upon in a capitated contract by a health insurance company and a medical provider. They are fixed, pre-arranged monthly payments received by a physician, clinic, or hospital per patient enrolled in a health plan, or per capita.
