The patient’s health plan is referred to as the 'payer of last resort.' The patient is covered by which plan?

The patient’s health plan is referred to as the 'payer of last resort.' The patient is covered by which plan?

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

Answer: (A)

Payer of last resort describes a plan that pays only after all other possible sources have been billed and exhausted. Medicaid is commonly described this way because it coordinates with other coverage (like private insurance or Medicare) and will pay any remaining eligible costs after those first payers have covered what they can. If a patient has private insurance, that plan typically pays first and Medicaid covers any remaining balance it is eligible to pay. If there is no other coverage, Medicaid acts as the primary payer. This role is why Medicaid is identified as the payer of last resort in this context.

Payer of last resort describes a plan that pays only after all other possible sources have been billed and exhausted. Medicaid is commonly described this way because it coordinates with other coverage (like private insurance or Medicare) and will pay any remaining eligible costs after those first payers have covered what they can. If a patient has private insurance, that plan typically pays first and Medicaid covers any remaining balance it is eligible to pay. If there is no other coverage, Medicaid acts as the primary payer. This role is why Medicaid is identified as the payer of last resort in this context.