An individual usually pays a monthly premium, and when an illness occurs, the individual receives treatment, and then a bill is sent to the insurance company that pays most (or all, in some cases) of the medical bill. What form of payment is this known as?

A) Government payment
B) Public welfare system payment
C) Third-party payment
D) Individual payment

Monthly Premium

The specific amount of money that individuals or organizations must pay periodically, usually monthly, to maintain coverage under an insurance policy.

Third-Party Payment

A health care payment plan in which the patient pays a premium to an insurance company and the doctor or hospital is paid by this company (e.g., Blue Cross/Blue Shield) for each treatment provided to the patient.

Insurance Company

A business entity that provides coverage, compensating policyholders for losses in exchange for premiums, in various domains such as health, life, and property.