Health Insurance Industry Financial Structure …show more content…
The financial structure varies because health insurance industries have three different types of payor mix: private companies, individuals and government entities (Zucchi, 2015). Each payor have its own set of risk, product selection and payment schedule. According to Kristina Zucchi (2015), government entities tend to be the largest payor out of the mix. But, has the slowest payment schedule. This slowness is entirely due to government changes on payment schedules. Financial managers who contracts with government entities will run the risk of over or under estimating their cash flow and