What does the term "self-pay" refer to in medical billing?

The term "self-pay" in medical billing specifically refers to out-of-pocket payments made by patients for healthcare services. When individuals do not have insurance or choose not to use their insurance, they are responsible for paying the full amount of their medical bills directly. This can include various services such as office visits, procedures, or treatments that patients receive.

Out-of-pocket expenses can encompass a range of payments, including those for services that are not covered by insurance, copayments, and deductibles. By understanding this term, healthcare providers and billing departments can effectively manage and communicate billing practices with patients who are paying for their care without third-party assistance from insurance companies or governmental support programs.