MN 507- Unit 3 DiscussionKatie J. KoppThird party payment is a system design for individuals or businesses to purchase health insurance and when services are provided. The health insurance company will then pay for services rendered. Third party payment distorts the market for health care through overuse or misuse of insurance by the insured. Eventually, the insurance companies will increase premiums to recover from the cost of medical care. This increase is what causes thousands of Americans from being able to afford health insurance for themselves and or their families. According to Buff & Terrell, “health insurance should be used to cover unpredictable events or risks.” Under the Patient Protection & Affordable Care Act (PPACA), services that are predictable and considered to be of minor concern are covered through health insurance. This act is what is essentially increasing the costs of health insurance (2015).