Which payment method is a fee scale per service developed for each service rendered and is the most common method?

Which payment method is a fee scale per service developed for each service rendered and is the most common method?

• A. Fee for service
• B. Capitation
• C. Indemnity
• D. Sliding scale

Answer: (A)

The payment method described is fee-for-service: each dental service has a specific fee that’s set in a fee schedule, and that exact amount is billed separately for every service rendered. This approach ties payment directly to the work performed, making charges transparent and straightforward to track for each procedure. It’s the most common method in many practices because it clearly rewards the delivery of services and is easy to implement with insurers and patients, allowing a separate charge for exams, cleanings, fillings, imaging, and more. It differs from other options in key ways. Capitation pays a fixed amount per patient per month regardless of how many services are provided, so there’s no per-service fee schedule. Indemnity plans reimburse based on a set percentage of charges or a customary amount, not a specific fee schedule for each service. A sliding scale adjusts charges based on patient income or ability to pay rather than assigning a standard fee to each service.

The payment method described is fee-for-service: each dental service has a specific fee that’s set in a fee schedule, and that exact amount is billed separately for every service rendered. This approach ties payment directly to the work performed, making charges transparent and straightforward to track for each procedure. It’s the most common method in many practices because it clearly rewards the delivery of services and is easy to implement with insurers and patients, allowing a separate charge for exams, cleanings, fillings, imaging, and more.

It differs from other options in key ways. Capitation pays a fixed amount per patient per month regardless of how many services are provided, so there’s no per-service fee schedule. Indemnity plans reimburse based on a set percentage of charges or a customary amount, not a specific fee schedule for each service. A sliding scale adjusts charges based on patient income or ability to pay rather than assigning a standard fee to each service.