Duplication

Creation of a standby or backup facility to be used only in case the original facility is damaged. Duplication reduces loss severity, but may have no effect on loss frequency.Separation : Division of an existing loss exposure into two or more units, all used in an organization’s daily operations. Separation reduces loss severity, but may increase loss frequency because of the larger number of units exposed to loss in daily use.Selection (of Risk) : (i) The choosing by an underwriter of risks acceptable to an insurer. (ii) A phrase used in reinsurance referring to the practice of ceding poorer business to a reinsurer while retaining good risks.

durable medical equipment (DME)

1. Billing phrase to Medicare and Medicaid fiscal intermediaries to specify medical supplies, devices, and equipment (e.g., crutches, urinary catheters, ostomy supplies, surgical dressings) for reimbursement. 2. Purchased or rented items such as a walker, seat lift equipment, wheelchairs, a hospital bed, and other medically necessary equipment prescribed by a health care provider to be used in a patient’s home and which are covered by the Medicare program. DME is paid under both Medicare Part B and Part A for home health services. Also called home medical equipment .

durable medical equipment regional carrier advisory process (DAP)

Formal method of obtaining comments about regional medical review policy development and revision and to discuss and improve administrative policies within the durable medical equipment regional contractor’s discretion. These workgroups may consist of physicians, clinicians, Medicare beneficiaries, suppliers, and manufacturers who are able to give input.