What Are the Duties of a Payer?
- Debt settlement is included in the duties of a payer. Ancient Romans started the concept of debt, or debita, a word meaning that which is owed. The concept applied to tangible and intangible items. Citizens acquired household goods in the central marketplace. Merchants established accounts for selected customers which allowed them to shop anytime and pay what was owed at a later time. Customers who paid what they owe took on the role of payer.
- The payer agrees to pay a predetermined amount of money to another party, known as the payee, on assorted financial contracts. Promissory notes are one document that defines an agreement between two parties. Payments are requested at a designated future date or on-demand, depending on contract details. A bill of exchange document requires that a third party be designated to hold payor funds and issue payee payments as indicated in the contract.
- Large companies take on payer duties within the health care industry. Under the single payer health care financing proposal, one organization accepts all individual health care payments. Provider reimbursements are paid by the same organization. Patients have access to inexpensive health services due to reduced administrative waste. Provider administration is facilitated due to one major entity processing billing information. The Physicians for a National Health Program states the program would be a highly cost-effective solution for taxpayers.
- The most common payer responsibilities occur on a monthly basis. Payers handle bills for utility fees, mortgage or rental payments and car notes in a timely manner. When bills are not paid, the payer is legally responsible. If bills cannot be paid promptly, the payer must make arrangements to pay amounts owed. Responsibilities have varied slightly, but the duties of a payer require them to responsibly handle private or public financial matters.