Payment methods in healthcare

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Question: In the US, the six major government programs are Medicare, Medicaid, the State Children's Health Insurance Program (SCHIP), the Department of Defense TRICARE and TRICARE for Life programs (DOD TRICARE), the Veterans Health Administration (VHA) program, and the Indian Health Service (IHS) program.The healthcare system offers four broad types of services: health promotion, disease prevention, diagnosis and treatment, and rehabilitation. Health promotion services help clients reduce the risk of illness, maintain optimal function, and follow healthy lifestyles.

Federal taxes fund public insurance programs, such as Medicare, Medicaid, CHIP, and military health insurance programs (Veteran's Health Administration, TRICARE). The Centers for Medicare and Medicaid Services is the largest governmental source of health coverage funding.In a bid to keep the spiraling costs of spending in US healthcare provision under control, the American Medical Association (AMA) decided there was a need for alternative payment methods in healthcare. This involved a move away from "fee-for-service" incentives, with more emphasis on value, in the belief that alternative payment methods in healthcare could lead to better outcomes at a lower cost.

Reference no: EM133568851

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