Which payment approach reimburses Medicare for all services related to a single procedure and post-discharge home care (often called episode-based payment)?

• A. Bundled Payments
• B. HRRP
• C. MCOs
• D. FPL

Answer: (A)

Bundled payments are an episode-based payment approach in which Medicare provides a single payment that covers all services tied to a specific procedure and the related post-discharge care over a defined period. This means the hospital, surgeon, anesthesia, post-acute care, and home health, if included in the episode, are paid together rather than billing separately for each service. The goal is to encourage coordination across providers and reduce unnecessary variations and costs, since everyone has a shared budget for the entire episode of care.

This fits the description of reimbursing for all services related to a single procedure and post-discharge care. The other options don’t match: the Hospital Readmissions Reduction Program focuses on penalties for high readmission rates, not on an episode-based payment model; managed care organizations are a broader network and payment structure for services; Federal Poverty Level is a socioeconomic measure, not a payment approach.