Which term describes an insurance carrier that pays the provider who rendered services to a patient?

• A. Third-party payer
• B. Direct payer
• C. Self-pay
• D. Government payer

Answer: (A)

The term describes the insurer that reimburses the provider is third-party payer. When a patient receives care, someone other than the patient or the provider takes responsibility for financing or reimbursing the service. That entity is typically an insurance company, a large employer-sponsored plan, or a government program. The provider bills this third party, which processes and pays the claim, while the patient may still owe a copay or coinsurance.

Direct payer would mean the patient pays the provider directly. Self-pay refers to paying the full amount out of pocket with no insurer involved. Government payer is a type of third-party payer (Medicare, Medicaid), but the broader term that covers any insurer paying the provider is third-party payer.