American Academy of Professional Coders (AAPC) Practice Exam

In the simplest terms, how many types of payers are there?

1. 1

2. 2

3. 3

4. 4

The correct answer is: 2

There are two primary types of payers in the healthcare system: private payers and public payers. Private payers typically include commercial insurance companies that provide health insurance coverage to individuals and employers, while public payers refer to government-funded programs such as Medicare and Medicaid that provide coverage to specific populations, including the elderly, low-income individuals, and those with disabilities. Understanding the distinction between these two groups is crucial for healthcare professionals, particularly in coding and billing, as it influences the reimbursement processes and guidelines that must be followed.