CAPITATION AGREEMENTSFebruary 27th, 2008
FiledFebruary 27th, 2008A capitation plan is an agreement between a practice and an insurance company. When you have a capitation agreement, your practice regularly receives capitation checks based on the number of your patients enrolled in the plan, not on the fee for your practice's services. The agreement usually allows you to charge patients copayments, and to bill the insurance company for some noncapitated procedures, such as X-rays and lab work. Noncapitated procedures are posted with your standard fees (you will receive payment for these). Capitated procedures are posted with zero amounts and do not affect the accounts receivable or account balances.