Chapter 19, Problem 4DQ

To determine

The reason why patients turn their backs on Medicare and instead pay out from their own pockets.

Concept introduction:

Insurance:

Insurance refers to the contract between the person who is insured against the damages and the person who ensures to pay for the damages.

Medicare:

Medicare is a type of federal health insurance policy, under which all the people above 65 years of age get a medical claim. Sometimes, it is also applicable for young people.

Explanation:

• The federal and the state government impose restrictions on the different types of social security schemes that a healthcare can provide to the people. It makes restriction on the amount paid to doctors and hospitals. In such a scenario, patients are discouraged because most of them suffer from different problems and are ready to pay from their own pocket.

• It has been observed that due to a very low reimbursement rate, more than one-third of the primary care physicians and almost one-fourth of the specialists are not ready to accept payment through these schemes. Hence, patients do not have any other alternative other than spending their own income to avail treatment.