INSURANCE

An Independent Practice Association (IPA) is an association of independent physicians, or other organization that contracts with independent physicians, and provides services to managed care organizations on a negotiated per capita rate, flat retainer fee, or negotiated fee-for-service basis.

An HMO or other managed care plan may contract with an IPA which in turn contracts with independent physicians to treat members at discounted fees or on a capitation basis. The typical IPA encompasses all specialties, but an IPA can be solely for primary care or may be single specialty.

IPAs are typically formed as an LLC, S Corp, C Corp, or other stock entity. Their purpose is not to generate a profit for the shareholders although this can be done. The IPA assembles physicians in self-directed groups within a geographic region to invent and implement healthcare solutions, form collaborative efforts among physicians to implement these programs, and to exert political influence upward within the medical community to effect positive change.

While there is a perception that IPAs have been formed to negotiate as a group with insurance companies in an attempt to improve rates of compensation, by Federal Trade Commission statute they cannot do this. "Messengers", specialists who are selected to represent individual practices, can be used by IPA members to review and discuss coding and compensation with health insurance companies. These professionals do not collectively bargain and can only do so if the doctors have reorganized under a single tax ID number which is not an IPA model.

Accidental Death and Dismemberment Insurance (also known as AD&D) is a form of insurance covering death or specific types of injury as a result of an accident. In the event of accidental death, this insurance will pay benefits in addition to any life insurance held. Death by illness, suicide, or natural causes is generally not covered by AD&D. Additionally, AD&D generally pays benefits for the loss of limbs, fingers, sight and permanent paralysis. The types of injuries covered and the amount paid vary by insurer and package, and are explicitly enumerated in the insurance policy.

There are four common types of group AD&D plans offered in the United States:

• Group Life Supplement.  The AD&D benefit is included as part of a group life insurance contract, and the benefit amount is usually the same as that of the group life benefit.
• Voluntary.  The AD&D is offered to members of a group as a separate, elective benefit, and premiums are generally paid as a payroll deduction.
• Travel Accident (Business Trip).  The AD&D benefit is provided through an employee benefit plan and provides supplemental accident protection to workers while they are traveling on company business (the entire premium is usually paid by the employer).
• Dependents.  Some group AD&D plans also provide coverage for dependents.