What defines capitation in the context of health insurance?

Capitation is a payment model used in health insurance where a healthcare provider or organization is paid a set, predetermined fee for each enrolled patient regardless of the number of services the patient actually uses. This is intended to encourage preventive care and efficient healthcare delivery, as providers are incentivized to keep patients healthy and minimize the need for more costly services.

In this context, the flat fee structure means that providers receive the same payment for each patient over a specific period, typically monthly, regardless of whether the patient seeks care or how often they do so. This contrasts with other payment models where providers are compensated based on the specific services rendered, which can lead to higher overall costs.

The other choices reflect different healthcare payment structures. Some may involve variable payments or contingent fees based on the utilization of services, which do not align with the definition of capitation. Therefore, the flat fee paid per patient captures the essence of capitation accurately.