Method of payment in which the client pays health care provider an amount from an established schedule of fees.

• A. Allocation-based pricing
• B. Fee-for-service (FFS)
• C. Capitation
• D. Medicare Part B

Answer: (B)

Paying per service according to a fixed price list means the payer (patient or insurer) covers the specific charge set for each individual service. In this model, each procedure or visit has a designated amount on a fee schedule, and the provider bills that amount for every service rendered. The total cost adds up as more services are provided, which is the defining feature of fee-for-service.

This differs from capitation, where a provider is paid a flat amount per patient per time period regardless of how many services are given, and from Medicare Part B, which is a payer program rather than a payment method itself. Allocation-based pricing isn’t the standard term used for these healthcare payment methods.