Incentives
– A mechanism utilized to motivate insureds to achieve the desired result. For example, a benefit plan may provide 100% coverage if a PPO provider is used. The same benefit plan may only provide 70% coverage if a non-PPO provider is used. Paying 100% when a PPO provider is used, encourages the insured to use PPO providers. If they do not, they will bear the responsibility of 30% of the bill.
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