alt Hacker News>It categorically does not. It would be foolish to do so.
Foolish hardly implies categorically false. It's a well-documented incentive for other risk-bearing entities (see insurance claim denials). Why are providers under capitated contracts categorically immune to refusing treatment to protect margins?
The Medicare “star system” attempts to compensate for this, but somewhat perversely by giving higher reimbursement rates to providers with higher quality. Logically, they should be getting lower rates because they’re more efficient at providing the service. But because the only real incentive is their profit margin, it has to be that way. And of course the star system definitions end up being a constant target of lobbying and stat-gaming.