prepaid health plan (PHP)

Prepaid managed care program that either provides less than comprehensive services on an at-risk basis or one that provides any benefit package on a nonrisk basis or one in which a specified set of health benefits is provided in exchange for a yearly fee or fixed periodic payments. See managed care.

Prepayment

System of paying for medical services before receiving them such as in the form of scheduled monthly insurance premiums or a budgeted basis, without regard to services rendered. In managed care plans, capitation is a form of prepayment.
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UK: Payment in advance. Occurs when the employer’s pension contributions exceed the actuarial calculation as being the contributions required. The prepayment, is shown in the employer’s (not the pension scheme’s) accounts as an asset.

Prepayment health care plans

Prepaid health care plans that meet federal legal standards for managed care plans (e.g., health maintenance organizations, provider-sponsored organizations, preferred provider organizations, or other types of network plans except network medical savings account plans). They incorporate cost containment and emphasize preventive care to members of the plans. Also referred to as coordinated care (CC) plans or managed care plans.