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Financial and Economic Basics

Give a brief background on the following topics:
1. Government insurances and payment expectations
2. Commercial insurances and payment expectations
3. Liability insurances and payment expectations
4. Self-pay/ cash pay patients and payment expectations.
5. Focus on the ways in which these types are different from one another and what you as the medical business professional might need to know about the types of programs in order to bill, collect, account and project financial expectations. Do they have different rules? Are the patients responsible for more or less of the balance? Can you reasonably reduce the charges for a self-pay patient? Do you need to be comfortable with contract language for the others?
6. Consider that your payer mix is the basic determinant for much of your financial projections as you review and prepare this material
Please include in text citations and must be APA format

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Answer1:
Insurance works as a tool that boosts the protection activity of the people in context of wealth, health and risk management. The government makes a series of regulations for regulating the industry of insurance and also fulfills the requirement of insurance activities in certain strategically important areas. Those insurance could be called government insurances in which government becomes an insurance service provider (Cavallo, Valenzuela & Borensztein, 2008). In some events, the government offers direct insurance to countryman for covering the damages in the condition of any ethical fault by damage cost. So, the government takes very low cost for this type of insurance because it is directly related with the social norms of the respective country that could be also afforded by the poor people (Longenecker, Petty, Palich & Hoy, 2011). Government takes a minimum amount from customers on the basis of their earnings.

Through the insurance activity, government keeps promises for retaining loyalty and trust of customers to get quality services for meeting customers' expectation; delivery of payment within time with friendly behavior.

Answer 2:
Commercial Insurance is a different and unique type of contract that could occur between a business owner and insurer party. In this activity, the insurer proposes the business owner for minimizing their financial risks and related losses due to weather, accidents, theft, lawsuit, and other reasons. In this type of insurance, customers pay the cost of insurance in the form of premium for getting benefits by the commercial insurance because it encounters the upcoming risk effectively (Ledlow & Cwiek, 2005). Through these insurances, the business owners can insure their organizational assets along with the health of all employees. But this type of insurance could take renovation after every six month and it also requires huge amount from the side of customers for protecting commercial products (Leebov, 2003). ...

Solution Summary

The expert examines financial and economic basics.

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