AHM-250 Exam Dumps | PBM plans operate under several types of contractual arrangements. Under one contractual arrangement,

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Question 208/217

PBM plans operate under several types of contractual arrangements. Under one contractual arrangement, the PBM plan and the employer agree on a target cost per employee per month. If the actual cost per employee per month is greater than the target cost, then the PBM will share in the cost overrun. On the other hand, if the cost per employee per month is less than the target, the PBM shares in the savings. This type of contractual arrangement is known as a

A. fee-for-service arrangement

B. risk sharing contract

C. capitation contract

D. rebate contract

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Question 208/217

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