third-party payers

Third-party payers are organizations that provide health insurance coverage by paying for medical expenses on behalf of individuals. Instead of patients paying doctors or hospitals directly, the insurer covers the costs according to the policy terms. Common examples include private insurance companies, government programs like Medicare and Medicaid, and sometimes employers who provide health benefits to employees. This system shifts the financial responsibility from the patient to the third-party payer, streamlining healthcare payments and facilitating access to medical services.