Which term describes a health system where the government finances healthcare for all residents through a single payer?

• A. Out-of-Pocket System
• B. Hybrid System
• C. Single-Payer System
• D. Multi-Payer System

Answer: (C)

A single-payer system is a health system in which the government finances healthcare for all residents through one main payer. In this setup, taxes or mandatory contributions fund a single public entity that pays for medically necessary services for everyone, while care can be delivered by a mix of public and private providers. This structure aims for universal coverage and simplified billing, because one payer handles the financing for the entire population.

This differs from an out-of-pocket system, where individuals pay directly for services at the point of care; a hybrid system, which combines public and private funding sources; and a multi-payer system, which relies on several insurers or payers rather than one central payer.