discounted fee-for-service (discounted FFS)

Type of fee-for-service payment in which a managed care plan negotiates a discounted fee with a provider that is less than the usual or customary fee. It may be a fixed amount per service or a percentage discount. Physicians may be attracted to such negotiations because they represent a way to increase the volume of patients seen or reduce the chance of losing volume. Also called contracted discount rate .

Discounting

a term used to describe adjustments made to general business reserves so that they reflect the present value of the future contingent liabilities; such an adjustment may be made for accounting purposes, and may in certain circumstances be required for tax purposes where the reserves are initially calculated by reference to the likely ultimate cost of settlement after taking into account monetary inflation, and also the tendency for court awards for damages to increase by more than the rate of inflation; the adjustment is usually made by discounting the ultimate cost of settlement by reference to a suitable rate of interest, thus reflecting the time value of money.

Discovery of ship’s papers

Application to court by an insurer after a loss for the production of relevant ship’s documents. The order can be issued against the shipowner, a mortgagee, the insured in the case of cargo policy, insurers in the case of reinsurance, an agent who sues on behalf of his principal, an insured where the insurer seeks a return of money allegedly obtained by fraud, an assignee of policy proceeds and other interested parties.