What is the primary function of third-party insurance programs?

The primary function of third-party insurance programs is to provide coverage on behalf of the patient. These programs serve as a mediator between the patient and the healthcare provider, helping to offset the cost of medical services and procedures. When a patient has insurance, the insurance company agrees to pay a portion of the costs incurred during medical treatment, which can significantly lessen the financial burden on the patient. This mechanism allows patients to access necessary healthcare services without having to pay the full amount out of pocket, making healthcare more accessible.

While direct payment to healthcare providers and managing patient records are important aspects of the healthcare system, they do not define the core purpose of third-party insurance. Although some insurance programs may facilitate elements of patient education, their primary role is centered around financial coverage and assistance for medical expenses incurred by patients.