True, the existence of a third party in medical care market separates the buying from the paying for medical care.
A third party payer is defined as any entity other than the individual who obtained the medical care or facilities at issue (first party) and the VA who made available the care or services (second party) that is responsible for paying medical expenses on behalf of another person through insurance, an agreement, or a contract. A public or private organization that covers or insures medical expenditures on behalf of participants is third party. An individual is charged a premium, and the payer group covers the individual's real medical expenditures on his or her behalf. " A company that manages and reimburses health care expenses (as opposed to the patient or the medical care provider), as stated in the definition. Insurance companies, government payers such as Medicare, and even employers are examples of third-party payers (self-insured plans). Therefore, the existence of a third party in medical care market separates the buying of medical care from the paying for medical care.
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