Full Answer Section

Prospective vs. Retrospective Reimbursement:

• Prospective Reimbursement: In this system, healthcare providers receive a pre-determined fixed amount for specific procedures or services before the service is rendered. This is often seen in Medicare, where the government sets reimbursement rates for various procedures.

• Retrospective Reimbursement: Here, healthcare providers submit claims after providing services. The insurance company then reviews the claim and reimburses the provider based on a fee schedule or negotiations. This is common with private insurance plans.

While Medicare is the most likely option, there’s a slight possibility Suzanne could have a private insurance plan with Medicare Advantage. However, Medicare Advantage plans typically operate under a managed care system, which often negotiates pre-determined rates with healthcare providers, similar to traditional Medicare.

Additional Considerations:

• It’s important to note that Suzanne’s specific plan details might influence the reimbursement approach. Some Medicare supplement plans might function with a retrospective approach.
• This scenario focuses on the US healthcare system. Insurance systems and reimbursement structures can vary significantly in other countries.