Examples of third-party payers include medical support from absent parents, state workers compensation, private health insurance, court settlements from a liability insurer and employment-related health insurance. Third-party payers are individuals or organizations that are liable to pay for medical assistance given to a person.
Third-party payers help to reduce the heavy load a person has when paying their medical expenses. They are legally responsible for paying the bills for a patient and usually pay a large percentage of the total cost. A third party is also a program that is intended to help a person meet their medical costs, such as state workers' compensation.