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Separating a service into its individual components and billing for each component separately. For example, total abdominal hysterectomy billed as five procedures; laparotomy, evaluation under anesthesia, hysterectomy, abdominal exploration, and oophorectomy. Also referred to as a trend in insurance benefits contracting wherein the purchaser unbundles or contracts separately for specific services (e.g. mental health, dental care, etc.).

Definition extracted with permission from American Academy of Family Physicians: Family Physicians and Managed Care

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