Final answer:
A written authorization allowing the insurance company to pay the physician directly is called an assignment of benefits. It is integral in managing healthcare financial transactions within systems like deductible-based plans, fee-for-service, and HMOs.
Step-by-step explanation:
A written authorization by a patient that allows the insurance company to pay the physician directly for billed services is known as an assignment of benefits. In healthcare, it is common for insured individuals to authorize direct payment to medical care providers, facilitating the insurance claim process. Within various healthcare plans, services are often subject to a deductible, which is the amount that policyholders must pay out of pocket before the insurance coverage pays for any services.
Additionally, fee-for-service systems and health maintenance organizations (HMOs) represent two different methods of healthcare financing. Fee-for-service involves a payment model where medical care providers are reimbursed based on the individual services they provide, while HMOs operate on a capitation basis with a fixed amount paid per enrolled person, regardless of the number of services provided. The assignment of benefits is a tool that helps manage these financial transactions between healthcare providers, insurance companies, and patients.