A Payer That Is Contractually Obligated to Make Payment for Medical

question 64

Multiple Choice

A payer that is contractually obligated to make payment for medical services on behalf of the covered person can be:

• A) an insurance company.
• B) a third-party administrator.
• C) a self-insured health benefit plan.
• D) all of the above.

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Definitions:

Labor

Work or human effort, including physical and mental, contributed to the production of goods and services.

Leisure

Free time when one is not working or attending to other duties, often used for relaxation, entertainment, or hobbies.

Nonlabor Income

Income received that does not come from employment or work, such as investment returns or inheritance.

Wage Rate

The amount of money paid to an employee for a unit of time worked, typically expressed per hour or year.