For each of its products, the Wisteria Health Plan monitors the provider reimbursement trend and the residual trend. One true statement about these trends is that
Wait, a 5% increase in the capitation rate is considered a residual trend? I thought that was just a straight-up provider reimbursement change. These insurance terms are starting to make my head spin!
B) Wisteria's residual trend is the difference between the total trend and the portion of the total trend caused by changes in Wisteria's provider reimbursement levels
B) Wisteria's residual trend is the difference between the total trend and the portion of the total trend caused by changes in Wisteria's provider reimbursement levels
Ah, I see. The residual trend is what's left over after accounting for the provider reimbursement changes. Sounds like a real brain-teaser to keep track of all those moving parts.
The provider reimbursement trend is definitely more challenging to quantify. Wisteria must have a team of actuaries crunching the numbers 24/7 to stay on top of that!
B) Wisteria's residual trend is the difference between the total trend and the portion of the total trend caused by changes in Wisteria's provider reimbursement levels
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