Which system is used when a dental provider contracts with a program to provide all or most dental services to program subscribers in return for payment on a per-capita basis?

• A. Fee for service
• B. Capitation
• C. Indemnity
• D. Sliding scale

Answer: (B)

Capitation is a payment arrangement where a dental provider contracts with a program to deliver all or most services to enrolled subscribers in return for a fixed amount per person over a set period. Because the payment is per capita, it isn’t tied to the number or type of procedures performed, which encourages the provider to emphasize preventive care and efficient management of care within a budget. Financial risk shifts toward the provider, who must manage resources to stay within the capitation payments. This contrasts with fee-for-service, where reimbursement comes for each individual service rendered; indemnity plans that reimburse charges after services are provided; and sliding-scale arrangements that adjust patient payments based on ability to pay rather than a per-person service contract.