What is the payment method used in Traditional Medicaid?

The payment method used in Traditional Medicaid is Fee-for-Service. This approach is characterized by a reimbursement model where healthcare providers are paid for each individual service they provide to a patient. In a Fee-for-Service system, providers bill Medicaid for specific services rendered, which can include hospital visits, medications, laboratory tests, and other healthcare services.

This model contrasts with other payment methods, such as capitation, where providers receive a set amount per patient regardless of services rendered, or per diem rates, which involve payment per day rather than per service. Value-based care, on the other hand, focuses on the quality of care provided and seeks to incentivize better health outcomes for patients, which is not how Traditional Medicaid operates. Thus, the structure of Fee-for-Service in Traditional Medicaid allows patients to receive a range of services independently without the constraints of a predetermined budget or a focus on overall health outcomes.