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Impact of third-party payers on healthcare - advantages

Advantages of using third-party services

- cover patients’ medical cost

Third-party payers help individuals to prepare for potential health related problems and cost associated with that. They mitigate the effect of those medical expenditures by bearing full or partial health related expenses.

- provide access to preventive medicine

Individuals can seek a high-quality preventive medical help and don’t wait until they develop some chronic illnesses because hospitals’ bills will be paid by the insurance companies. This prevention not only keeps citizens healthier, but it also saves money on the expense of the health care that would otherwise be required to deal with the problems when they arise. In addition, it will help to create a healthy nation environment where sick people won’t spread their diseases among others. People’s life expectancy will increase.

- provide access to health care services

Employees who have health coverage can visit the doctor, get treated and possibly be back to work in a couple of days or even on the same one. It is very practical and efficient to have this quick and easy access to medical services and care because it reduces the loss of working hours on their jobs.

- protect patients’ interests

In many cases the health care insurance cost is shared with the employer. Therefore, the insured employees were not likely to scrutinize medical expenditures to avoid future premiums increases or cancelation of the insurances. Patients will be also protected from the insurance denials for preexisting medical conditions. Health care insurances, as patients’ agents, protect their interests and help to monitor how health services will be provided. They make certain contracts with the physicians about pre-authorizations and denials of payments which ensure that there won’t be any unnecessary procedures and treatments.

- shield providers and decrease payments uncollectibility

Providers’ financial protection is very important because it insures that hospitals will stay in the business and will advance overtime. Government programs, as third party payers, help hospitals to cover most of their costs for the patients who cannot pay for the medical bills and cannot afford to have a health care insurance. Those government programs help to decrease number of self-paid payers. It is especially important for health care providers because they have an unfortunate saying about such health care consumers in the medical industry as, "Self-pay means No Pay." Self-pay accounts have the highest collection problems and write offs issues. Private insurances cover also huge percentage of patients and their health related bills.

- help to advance health care services

Providers’ protection by the third-party payers give raise to health care development and growth. Since the time the third-party payments first started there is huge and rapid step forward in health care industry. Hospitals are able to afford buying expensive equipment to do more fast and accurate diagnosis. Doctors have more opportunities to perform high quality surgeries to transplant organs reducing waiting periods, for example. In addition, they can do costly researches for our better and healthier tomorrow.