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.