The existence of a third party in the medical care market separates the buying of medical care from the paying for medical care.

Question

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When a third party such as an insurance company is involved in the medical care market, they act as the payer and separate the buying of medical care from the paying for medical care. This means that patients do not have to directly pay for the full cost of their medical care, but rather pay a portion of it through their insurance premiums or co-pays. This can lead to issues with rising healthcare costs and a lack of transparency in pricing.

The Existence of a Third Party in the Medical Care