The costs associated with health care can really put a stranglehold on both the general public and the health care network providers. Some within the medical community believe that advocating capitation is currently the best alternative to reduce some of the unnecessary costs.

Capitation is a method used by health care insurance companies to pay health care network providers and is usually under the guidance of health maintenance organization (HMO) plans. The health care providers, which are typically primary care physicians, enter into a capitation agreement with an insurance network provider that gives a fixed payment amount per patient enrolled in the plan. The fixed amount is distributed every month regardless of the number patient visits. This means they are paid the same if a patient is seen ten times in a month or even if a patient does not seek any medical care.

An insurance network provider may encourage capitation agreements with primary care givers in an effort to reduce overall costs. It is the belief that if the physician will not be compensated extra for additional office visits or any associated medical expenses, they will be more conservative with their treatment assessments. The idea is to discourage the practice of unnecessary and costly medical procedures or prescriptions, because any extra costs will have to be absorbed by the primary care provider.

There exists some anxiety within the general public and the medical community that the practice of capitation will result in poorer primary care. If a physician is more apprehensive about recommending extra procedures or medical care because they don’t want to carry the burden of the costs, the quality of the patient’s care may suffer. This could be especially true if there is justified cause in the recommendations.

However, supporters of this method suggest that it doesn’t result in a decrease in the quality of the care, but instead encourages preventative health care maintenance. Simply put, the doctor should have an increased interest in the patients’ health because if they get sick, they will cost more to treat. On this assumption, the doctor should be more involved in the maintenance care. Doctors would be more apt to encourage the patient to get healthier by losing weight, exercising, eating right, or to quit smoking.

Capitation may actually prove to be a better method for improving the overall health of the public. If you are interested in finding a provider that offers capitation plans, you could request online insurance quotes about various policies. Depending upon your personal health care needs, these online insurance quotes may also provide you with comparison rates, so that you can find the best affordable policy.