Tag Archives: EDI-834

EDI 834

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In a typical health care model, there is an insurance company (“payer”) in between a hospital (“provider”) and an employer (“sponsor”). The payer is a healthcare organization that pays claims and administers insurance or benefit product. The sponsor buys the health benefit product from the payer for its employees. That means the employees become members and eligible to go to hospital when they need care. The providers are paid by the payer for the service provided to their members.

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