What does a sliding fee scale in healthcare mean?

A sliding fee scale in healthcare is a system that adjusts the cost of services based on a patient's ability to pay. This approach recognizes that patients have varying financial resources and seeks to make healthcare services more accessible to those with lower incomes. Under this system, fees can decrease as a patient's income decreases, allowing individuals who may otherwise forego necessary medical care due to cost to receive treatment. By varying the fees, healthcare providers can ensure they are serving a wider range of patients and addressing financial barriers to access.

The other options do not accurately describe a sliding fee scale. Fixed fees regardless of financial circumstances do not take into account patients' unique economic situations, which is contrary to the purpose of a sliding scale. Paying only a percentage of total fees does not capture the essence of how a sliding fee scale operates, as it involves adjusting the entire fee rather than a simple percentage. Lastly, adjusting insurance premiums annually is not related to individual patient payment structures, as sliding fee scales specifically pertain to direct patient billing rather than insurance reimbursement mechanisms.