third-party payer systems

A third-party payer system involves a separate entity, usually an insurance company or government program, that pays for healthcare services instead of the patient directly. When you receive medical care, the healthcare provider bills the insurance or program, which then covers a portion of the costs, leaving the patient responsible for any remaining fees. This system helps manage healthcare expenses and access, but it can also add complexity to billing and reimbursement processes. Examples include Medicare, Medicaid, and private health insurance plans.