Question

Please answer the following question in 350 words count in your own word please add reference from internet source or google scholarly at the end of the question This assignment will require you to consider several influences to the budgeting process of a health care institution. Here, you will review payer mix and other influences to revenue as you consider revenue factors for the budget. Complete the following for this assignment:

• Take into consideration that while more patients may have insurance coverage, the out-of-pocket expenses will continue to create a potential uncollectable liability.

Answer 1

Insurance coverage that pay the cost ofbodily injury,when the insured person get injured and one buy health insurance plans to meet the cost of hospitalization, but when the hospital bill is handed over t you,you may get shock of your life if the entire cost of hospitalization is not reimbursed ,in such events ,someone not holding a daily hospital cash plan will have to pay out of pocket, because of this low_cost premium plans that feature this problem and the inability of consumers to pay the high deductible portion of their health coverage will create a crisis of liquidity that will grow as more and more consumer migrate to HDHPs. And in the past six years, employers have seen the amount that spend on employee health care increases by 40% and over the same period ,employee out of pocket and payroll costs of health care have increased by82% per year

Patient do not pay either because the lack funds or they simply choose not to pay, according to deloitte center of hralth solution.in 2003, the federal reserve reported that 52% of all collection action by collection AGENCIES and creditors were associated with medical bills. In collectible consumer debt for medic care is rising throughout the country, and the recoveryrate are strategically low , for hospitals ,the RATE is 11.3% according to ACA international's top collection market surveys for 2012, which also reports that the recovery RATE for physicians is 16.7% on aged accounts receivable ,so for to meet the out of pocket expenses ,The daily hospital cash plan will be helpful

Different insurance may call a DHC plan by different names hospital cash, daily hospital cash, hospital cash insurance but all will work in same way , and these plan are different from a medical plan in the way they operate , while the medical plan reimbursed the hospital bill , the DHC plan pays one on the basis of the no. Days of hospitalization irrespective of the actual amount of hospital expenses , that will include the cost of test, doctors fees, room rent amongst others DHC plan merely look at the no. Of days of hospitalization as pay up as per the policy term and conditions ,the pay out case if a DHC plan is not linked to the actual hospitalization expenses what's more you can make your claim under both the DHC and the medical policy simultaneously so this will help in managing the out of pocket expenses