Payer definition
/What is a Payer?
A payer is the person or business responsible for making a payment to a payee. Thus, a person making a mortgage payment to a lender is designated at the payer, and the lender is the payee. Or, the issuer of a bond is the designated payer of subsequent coupon payments to investors. The concept can refer to the payment for any transaction, such as for goods, services, loans, and dividends.
Third-Party Payer
A variation on the payer concept is the third-party payer, which is an entity that pays medical bills on behalf of someone else. For example, the United States government’s Medicare program acts as a third-party payer when it pays medical bills on behalf of those people who have enrolled in the Medicare program.