Which option is NOT a major government payer?

Which option is NOT a major government payer?

• A. Medicare
• B. Medicaid
• C. Private insurance
• D. CHIP

Answer: (C)

The main idea here is who pays the bills through government programs. Medicare, Medicaid, and CHIP are designed and funded by the government to cover eligible populations. Medicare covers most people 65 and older or younger people with specific disabilities, funded mainly by payroll taxes and premiums and managed by the federal government. Medicaid is a joint federal–state program for people with low income, with funding and administration shared between federal and state levels. CHIP provides health coverage for children in families that earn too much for Medicaid but can’t afford private insurance, and it is also supported by government funding and state administration. Private insurance, on the other hand, is provided by private companies and paid for by individuals or their employers through premiums. It may be regulated by the government, but the payer itself is not a government program. So private insurance is not a major government payer.

The main idea here is who pays the bills through government programs. Medicare, Medicaid, and CHIP are designed and funded by the government to cover eligible populations. Medicare covers most people 65 and older or younger people with specific disabilities, funded mainly by payroll taxes and premiums and managed by the federal government. Medicaid is a joint federal–state program for people with low income, with funding and administration shared between federal and state levels. CHIP provides health coverage for children in families that earn too much for Medicaid but can’t afford private insurance, and it is also supported by government funding and state administration.

Private insurance, on the other hand, is provided by private companies and paid for by individuals or their employers through premiums. It may be regulated by the government, but the payer itself is not a government program. So private insurance is not a major government payer.