Risk adjustment for health status.
A managed care plan's capitation payments should include an adjustment for its members' health status. Demographic and diagnostic information can be used to make the adjustment, which would help to minimize a health plan's potential financial liabilities. Without the adjustment, health plans have an incentive not to enroll persons with the heaviest care needs.
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D006304:Health Status; D006801:Humans; D008329:Managed Care Programs / Q000191:economics*; D012308:Risk Management; D014481:United States