What is a capitation dental scheme primarily designed for?

Prepare for the CII Certificate in Insurance - Financial Protection (R05) Exam. Use engaging flashcards and multiple-choice questions with detailed explanations and hints. Ace your exam now!

A capitation dental scheme is primarily designed for budgeting for dental costs by providing dentists with a fixed amount of money per patient, typically on a monthly basis. This arrangement allows for predictable costs and encourages preventive care. By paying a set fee, dental practices have an incentive to keep patients healthy and avoid costly treatments through regular check-ups and preventive measures, which can lead to overall reduced expenditures for both the patient and the provider.

This method contrasts with other types of arrangements where payments are made per treatment or service provided, which could lead to higher costs for patients, especially if extensive procedures are required. Therefore, a capitation scheme is an effective strategy for managing and budgeting dental care costs over time, ensuring both financial predictability and an emphasis on preventive care.

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