2. Americans over the age of 65 are covered by Medicare. For them, the medical m
ID: 1145037 • Letter: 2
Question
2. Americans over the age of 65 are covered by Medicare. For them, the medical market is a third-payer market. What is a third-party payer market? How does total quantity of medical services provided in a third-payer market, such as Medicare, compare to a market in which the purchaser of medical services pays the full cost? How does price of medical services provided in a third-part payer market, such as Medicare, compare to the price in a market in which the purchaser of medical services pays the full cost? If third-payer markets, such as Medicare, benefit buyers by providing a greater quantity of services and sellers by yielding a higher price, who is hurt by such a payments systemExplanation / Answer
A third payer market is a market where the person who pays for the product differs from the person who receives the product.
Using the medicare, the quantity of medicare services offered will be a lot higher when compared to that of the original quantity and in this regard, people over 65 will receive a lot of medical services as there's no fee on the whole.The price of the market will be a lot higher when compared to that of the usual one as the medical agencies will try to balance the overall revenue by charging the regular citizens more than the whole. Therefore, it can be considered that the payers of the services are actually hurt by such a payments scheme as they get to pay more than the usual on the whole.
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