insurance

What is third-party payer?

 

What is third-party payer?

The Bankrate.com financial term of the day is: "third-party payer."

Third-party payer is a fancy way of referring to your health plan or health insurer. When you see a doctor or go in for a medical procedure, you'll pay a share of the bill, maybe through a copayment. The third-party payer will take care of the rest.

In the health care business, first there's the patient, or customer. The second party in any transaction is the provider -- namely, the doctor or hospital. The third-party payer is the HMO or insurance company that picks up much of the costs.

To compare insurance policies, get a quote by visiting the Insurance section at Bankrate.com.

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