HEALTHCARE 2
Introduction
In insurance payment for healthcare, there are four basic modes of payments. They
include; individual private insurance, out-of –pocket payment, employment based private
insurance method and government financing. For Medicare, the insurer pays the health
provider directly with the remaining 20% of the cost being paid by the patient. If and when
the provider does not accept the claim assignment, Medicare will pay for the care received to
the patient who will then pay the provider (Klemm, et al, 2016)
For Medicaid, the insurance program offers free and low-cost health coverage to the
low-income earners, children’s, pregnant women and the elderly. For this program, the best
billing method is cash, since it required little or no money involved. Hospitals should be paid
in cash or credit depending on the level of insurance needed. Private insurance programs
should pay using credit to the care giver. Private insurance programs usually use credit cards
to pay care givers.
Dependencies
Type of
insurance
Dependencies / Age Groups Type of billing/
method of billing
Medicare General population( 1-90yrs) Credit or cash
Medicaid Low income earners and the vulnerable( 1-70
yrs)
Cash
Out-of-pocket Vulnerable members of the society( 1-90yrs) Cash
Hospitals General population( 1-90yrs) Cash
Private
insurance firms
Employees in corporations and the interested
peoples( 25-65 yrs employed)
Credit cards

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