selfpayment

Selfpayment, or self-payment, is the act of paying directly for goods or services by the consumer without involvement of a third-party payer such as an insurer, employer-based plan, or government program. In healthcare, self-payment commonly refers to patients who cover the cost of medical care out of pocket. In other sectors, self-payment can describe consumers who settle charges at the point of sale rather than using financing, installments, or third-party billing.

In healthcare, self-payment occurs when patients do not claim reimbursement from a health plan or when services are not insured. Providers may publish self-pay rates and offer discounts for immediate payment. Some jurisdictions require price transparency to aid patients in estimating costs. Self-pay patients may access financing or payment plans, charity care programs, or other forms of assistance in some systems.

In commerce and digital platforms, self-payment describes customers who settle charges directly, such as via cash, debit, credit cards, or digital wallets, without intermediaries or financing arrangements. Self-payment contrasts with subscription models, insurance-based billing, or third-party financing.

Advantages of self-payment include greater cost visibility and control, direct and potentially quicker transactions, and the possibility of lower overall prices where insurer markup is avoided. Risks include high out-of-pocket costs and potential medical or financial debt for costly services, as well as administrative burdens on the payer and provider. Systems that support transparency, price estimates, installment plans, and financial assistance can mitigate some downsides for both consumers and providers.