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