Question: To determine fee reimbursement to be paid to physicians, the CIGNA MCO assigns a weighted value to each medical procedure or service and multiplies the weighted value by a money multiplier. CIGNA and the providers negotiate the value of the mulitplier. One problem with the use of this system is that the reimbursement for procedural services, such as surgery, have more monetary value that do reimbursements for cognitive services such as office visits. This information indicates that Cigna determines fee reimbursement by using a financing arrangment known as:
1. capitation (PMPM)
2. Relative value scale (RVS)
3. Fee-for service
4. Diagnosis related group (DRG)