How are health services paid for Provide a definition for th

How are health services paid for? Provide a definition for the term \"third-party payer\", discuss the different payers currently operating in the market, and assess the importance of each. Please use a table format to list the information.

Solution

There are two main payers types: single payer and third-party payer. Single payer is when the person that obtains the health service is the same which pay for it, here relationship is direct taker and provider of health services.

However, it is more common the presence of a third party payer, which is an external agent that covers the other health expenses or part of them, they are insurance companies or public social protection systems.

Single Payer

Third-Party Payer

Type of relation with provider

Direct

Indirect

Capability to compare Prices/Features

Relatively High

Almost Null

Payment proportion

Full

Low percentage