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A . . . Access The patient's ability to obtain medical care. The ease of access
is determined by such components as the availability of medical
services and their acceptability to the patient, the location
of health care facilities, transportation, hours of operation
and cost of care.
Accountable Health Plan (AHP)
A joint venture between practitioners and institutions (insurance
companies, HMO's, or hospitals) that would assume responsibility
for delivering medical care. Physicians and other providers would
either work for or contract with these health plans. As IDSs form
and demonstrate their ability to managed capitated care, they
begin to struggle with issues of ownership or alliance partnerships
with health maintenance organizations (HMOs), insurance companies,
or other financing entities. An Accountable Healthcare System
describes an IDS with a financing component. When an IDS operates
one or more health insurance benefit products, or a managed care
organization acquires a large scale medical delivery component,
it qualifies as an Accountable Health System or Accountable Health
Plan. In the 1994 debate on healthcare reform, the proposed system
of managed competition provided for an Accountable Health Plan
that would have combined delivery and financing, and assumed
accountability for patient care.
Actuarial
Refers to the statistical calculations used to determine the managed
care company's rates and premiums charged their customers based
on projections of utilization and cost for a defined population.
Actuary
A person who determines insurance policy rates, reserves and dividends,
as well as conducts various other statistical studies. You don't
develop capitated rates, or agree to a capitated contract without
one of these working for you in some capacity.
Acute Care
A pattern of health care in which a patient is treated for an
acute (immediate and severe) episode of illness, for the subsequent
treatment of injuries related to an accident or other trauma,
or during recovery from surgery. Acute care is usually given in
a hospital by specialized personnel using complex and sophisticated
technical equipment and materials. Unlike chronic care, acute
care is often necessary for only a short time.
Adjudication
Processing claims according to contract.
Adjusted Average Per Capita Cost (AAPCC)
HCFA's best estimate of the amount of money care costs for Medicare
recipients under fee-for-service Medicare in a given area. The
AAPCC is made up of 122 different rate cells; 120 of them are
factored for age, sex, Medicaid eligibility, institutional status,
and whether a person has both part A and part B of Medicare.
Administrative Costs
Costs related to utilization review, insurance marketing, medical
underwriting, agents' commissions, premium collection, claims
processing, insurer profit, quality assurance programs, and risk
management.
Administrative Services Organization (ASO)
A contract between an insurance company and a self-funded plan
where the insurance company performs administrative services only
and the self-funded entity assumes all risk.
Admission Certification
A method of assuring that only those patients who need hospital
care are admitted. Certification can be granted before admission
(preadmission) or shortly after (concurrent). Length-of-stay for
the patient's diagnosed problem is usually assigned upon admission
under a certification program.
Admissions Per 1,000
An indicator calculated by taking the total number of inpatient
and/or outpatient admissions from a specific group, e.g., employer
group, HMO population at risk, for a specific period of time (usually
one year), dividing it by the average number of covered members
in that group during the same period, and multiplying the result
by 1,000. This indicator can be calculated for behavioral health
or any disease in the aggregate and by modality of treatment,
e.g., inpatient, residential, and partial hospitalization, etc.
Adverse Selection
One of the following:
- Occurs when premium doesn't cover cost. Some populations,
perhaps due to age or health status, have a great potential for
high utilization.
- Some population parameter such as age (e.g., a much greater
number of 65-year-olds or older to young population) that increases
the potential for higher utilization and often increases costs
above those covered by a payers capitation rate.
Agency for Health Care Policy and Research (AHCPR)
The agency of the Public Health Service responsible for enhancing
the quality, appropriateness, and effectiveness of health care
services.
Allowed Amount
Maximum dollar amount assigned for a procedure based on various
pricing mechanisms. Also known as a maximum allowable.
Ambulatory Care
Health services provided without the patient being admitted (on an
outpatient basis). No overnight stay in a hospital is required. The
services of ambulatory care centers, hospital outpatient departments,
physicians' offices and home health care services fall under this heading.
Ancillary Services
Professional charges for x-ray, laboratory tests, and other similar
patient services.
Anniversary Date
The beginning of an employer group's benefit year. The first day
of effective coverage as contained in the policy Group Application
and subsequent annual anniversaries of that date. An insured has
the option to transfer from an indemnity plan (which may have
maximum benefit levels) to an HMO.
Audit of Provider Treatment or Charges
A qualitative or quantitative review of services rendered or proposed
by a health provider. The review can be carried out in a number
of ways: a comparison of patient records and claim form information,
a patient questionnaire, a review of hospital and practitioner
records, or a pre- or post-treatment clinical examination of a
patient. Some audits may involve fee verification. Something we
had better get used to being subjected to since this is usually
first type or "first generation" managed care approach.
Average Wholesale Price (AWP)
Commonly used in pharmacy contracting, the AWP is generally determined
through reference to a common source of information.
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