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What role will risk adjustment have in single payer?

If a single payer system permits capitated payment of providers, then risk adjustment will be needed.

Topics: Risk Adjustment

Some single payer plans allow capitation (not just fee for service) payment of providers. If so, risk adjustment will be essential to compensate for differences in clinical severity and medical costs across providers. This will foster fairness for providers, and discourage selection and retention of less expensive individuals.

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