Major factors that have influenced healthcare financing From a careful review of literature, there are four major factors that have influenced the financing of healthcare. One of the notable factors is the shift in healthcare setting. Moreover, the trend of demand and supply is also a crucial factor. Besides, there are numerous changes that occurred during the 1980s which resulted into change in the balance of power. The government took the initiative to come up with strategic policies that controlled budget and financing of health care services. Another issue is related to the assumption that medical costs might exceed the budgeted amount and thereby result into higher deficits. This has led to the implementation of a policy whereby every hospital is paid a fixed amount for every patient depending on the disease category. How health care is financed There are myriads of ways used to finance health care. However, the financial system is usually controlled in order to ensure some kind of balance between demand and supply. For instance, through medical institutions such as Medicare and Medicaid, the government issues prospective payment bills that will be used to monitor the amount of money which patients remit to hospitals. Moreover, the government ensures that there are adequate health care facilities for all patients depending on the diverse categories of diseases. Thereafter, the government ensures that it does not overpay medical fee or underpay health services for patients. Moreover, the government uses value of scale to determine the amount of resources to allocate to physicians. Methods of healthcare payment for a private insurance   * Medicare- This is a type of hospital insurance that allows individuals above the age of 65 years to receive free healthcare.   * Medicaid- This is a healthcare program whereby individuals and families who have low income get funded by the federal or state governments in order to receive healthcare. These people include children, young adults and the aged who have inadequate resources to finance their medical bills.   * Group insurance- This is a form of insurance cover for a group of people who are either members of an organization, society or community.   * Individual insurance- This is a type of insurance whereby an individual pays for the cost incurred while receiving health care in a hospital.   * Managed care- This includes all techniques employed in order to reduce the healthcare costs while improving the quality of services provided.   * Fee-for-service- This is a method of healthcare payment whereby all the service offered are bundled and paid separately. This mode of payment depends on the quantity of care received. Benefits for the elderly provided by Medicaid that are not provided by Medicare  1. Elderly people are able to receive health care even at the age below 65 years.  2. People with or without disabilities ranging from ages 50-65 can still receive health care assistance from the government.  3. Aged people normally receive full coverage for their health care needs unlike the case for Medicare which is usually partial. Differences between skilled nursing and intermediate care facilities Skilled nursing facilities includ