Who pays medical insurance companies like Humana , BlueCross, AARP, etc.?
If Medicare pay our expenses, then who pays these companies expenses?
Why do we need these extra companies. Who pays them. Isn't that extra money Medicare has to pay?
If Medicare pay our expenses, then who pays these companies expenses?
Why do we need these extra companies. Who pays them. Isn't that extra money Medicare has to pay?
Comments
If you're using Humana as a Medicare Advantage or Supplemental program, a small part of the money is taken from your social security check each month, but the vast majority of it is paid by Medicare - which is funded via payroll taxes, and the general taxpayers.
One reason why Medicare "subs out" the work, is that the overhead for MEDICARE to process claims, is about $.80 on the dollar. The overhead for a private company to process claims, is about $.20 on the dollar. So Medicare actually SAVES money by paying the private sector to do the work, rather than them. Plus, there's a lot less FRAUD when a "real" insurance company is paying the bills.
I am not 100% sure I completely understand your question, but I think I might. Are you asking, if medicare pays your expenses then why is there a need for companies like Humana, BC, AARP, etc?
Many people will purchase supplemental coverages to medicare from companies like those mentioned. They will pay for the extra coverage themselves and these coverages comes in and pays for what medicare does not. There are many portions that medicare does not pay for.
I am not sure if this is what you are referring to. If not, please explain a little further and I will do my best.
Please expand on this. I cannot make out what you are trying to ask.