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 Originally Posted by Jack Sawyer
So what is first-party? Out of pocket payment for treatment?
When the person paying is the person buying and using. Like if you buy a sandwich with your money at the store that you eat.
Second-party is when the person paying is the person buying but not the person using. Like if you buy a gift with your money for some guy at work's birthday.
Third-party is when the person paying is neither the person buying nor the person using the product. Like when the government taxes a guy in Nebraska to buy food stamps for a guy in West Virginia.
Quality and efficiency deteriorate with each step away from first-party payment. Regarding insurance, it functions efficiently as a catastrophic measure. Our current healthcare market is nothing of the sort, and costs are outrageous because of it. I believe it is due to some specific government policies (like how tax breaks for employer health insurance are creating a whole market of health insurance where there would likely otherwise be upfront prices and first-party payments instead).
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