Definition extracted with permission from American Academy of Family Physicians: Family Physicians and Managed Care
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third-party reimbursement
A general term applied to health care benefit payments. It derives from the fact that under normal market transactions, there are only two parties, the consumer and the supplier, but under a benefit plan, a third party (e.g., government, an insurance company, an employer, etc.) is ultimately responsible to pay the costs of services provided to covered persons.
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