MN507 DISCUSSION 4

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Purdue Global University *

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MN507

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Medicine

Date

May 12, 2024

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docx

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2

Uploaded by GeneralScience8148

Third-party payment refers to a system in which a health insurance company or government program, like Medicaid, covers a substantial portion of an individual's healthcare costs. An essential aspect to consider when tackling these distortions is the implementation of value-based care, as it has the potential to alleviate these issues. Third-party payers can elevate the price received by suppliers while reducing the price individually borne by customers for the products and services utilized. In the absence of third-party payers, consumers tend to utilize more services, incentivizing providers to offer additional services beyond their usual scope. This trend ultimately leads to increased overall expenditure. The rise in demand due to these shifts in demand levels distorts the healthcare market, contributing to an escalation in healthcare prices (Crowley et al., 2020). For example, the implementation of the Affordable Care Act (ACA) in the United States has led to a rise in the number of individuals covered by health insurance plans. Consequently, there has been an increase in the number of people seeking medical care, inadvertently driving up medical prices due to enhanced demand. It's rational that individuals previously unable to afford medical coverage under the ACA would now seek to utilize the coverage they are mandated to have. For instance, someone without health insurance might have refrained from seeing a doctor for a cold due to the high out-of-pocket costs. However, with access to healthcare coverage, they would only be responsible for a fraction of the total cost, making it more feasible to seek medical attention. Furthermore, the coverage of screenings for diseases like breast cancer by many insurance plans adds to the increased demand for medical services ( McLaughlin, 2021) . References
Crowley, R., Daniel, H., Cooney, T. G., Engel, L. S., & Health and Public Policy Committee of the American College of Physicians (2020). Envisioning a Better U.S. Health Care System for All: Coverage and Cost of Care. Annals of internal medicine , 172 (2 Suppl), S7–S32. https://doi.org/10.7326/M19-2415 McLaughlin, D. B. (2021). Medicaid: A leader of healthcare innovation. Healthcare Executive, 36(3), 40-41
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