Benefits Of Payment Reimbursement Systems Within The...

Effective payment program strategies are a major part of administering health care. Reimbursement programs are a part of the United States (U.S) health care system. They represent a financial tool for providing cash flow to service physicians and hospitals. Most often, the ability to provide quality health care depends on the payment for the services given by physicians and hospitals. This paper presents a view of payment reimbursement systems within the health care industry. A comparative overview and description of payment reimbursement will be given in order to understand the flow of finances in the health care industry. The focus will be on the levy and fee-for-service reimbursement systems. Readers will then be able to conclude that†¦show more content†¦Contrary to the situation in which the patient makes payment arrangement with the caregiver, and then file claim directly to the insurance company to recoup all or at least part of the medical charge. The costs of health care are higher in the United States than in other countries and put a strain on the overall economy. In the United States, health care is technologically advanced but expensive. Health care costs were about $2.6 trillion dollars in 2010. For decades, the amount of money spent on health care has increased more than the overall economy has grown. Health care is paid for by government programs, private health insurance plans, and the person s own funds. Private insurance Private insurance can be purchased from for-profit and not-for-profit insurance companies. Although there are many health insurance companies in the United States, a given state tends to have a limited number. Herzberg, D. Most private insurance is purchased by corporations as a benefit for employees. The amount of money employers spend on an employee s health insurance is not considered taxable income for the employee. Because the government enables employees to spend less on health care, they may use health care services more. Government insurance programs The largest government insurance programs include Medicare, which funds