Illinois Health Insurance Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

A service provider receiving a flat fee for each participant under a capitated fee arrangement is indeed correct. This model establishes a predetermined amount that the provider is paid per patient, rather than for each specific service rendered. This means that regardless of the number of services required or provided to that patient during a certain period, the provider receives the same flat fee. This encourages providers to focus on preventive care and overall patient management rather than simply offering a high volume of services, aligning financial incentives with patient well-being.

In contrast, the other options imply variable compensation structures linked to individual service costs, provided services, or participant income levels, which do not align with the fundamental concept of capitation. Capitation is distinct in that it simplifies payment processes and can lead to more efficient care management by placing an emphasis on patient health outcomes rather than quantity of care.