Which payment model involves traditional Medicaid payment for each service rendered?

The payment model that involves traditional Medicaid payment for each service rendered is the fee-for-service model. In this approach, providers are compensated for each individual service they provide to Medicaid beneficiaries. This means that every consultation, treatment, and procedure is billed separately, allowing for itemized payments based on the specific services delivered. This model emphasizes service volume and can lead to increased accessibility of care since providers receive payment for a wider range of services.

In contrast, Medicaid managed care involves a different structure where services are managed by health plans, typically with a monthly premium that covers a range of services rather than payment for each service separately. The capitation payment model entails a fixed amount per patient per unit of time, regardless of how many services that patient uses. This system aims to incentivize efficiency and preventive care. The bundled payment model is another variation where providers receive a single payment for all services related to a treatment or condition over a specific period, thus promoting coordination amongst healthcare providers.

Understanding the fee-for-service model is critical for grasping how payment incentives can influence healthcare delivery, patient access, and provider behavior in the context of the 340B Program operations.