Medical care is very expensive and involves large amounts of money being spent by the patient. However, there are a number of reasons why this transaction is different from usual. First of all in an emergency situation the patient will not be in a position to pay, also the cost may be more than the patient can pay at the time, and thirdly, because most bills will be covered by insurance and claims will have to be made to them for payment.

The same process is used by virtually all insurance companies, be they private or government owned. The doctor or medical care provider will keep records of the patients medical condition and what treatments are necessary. These will then be administered by the provider. This will be compiled into a special form that will outline the bills involved.

This form is then sent to either to an intermediary clearing house or directly to the insurance company for payment. The whole process is electronic. It is then for the insurance company to pay or dispute the bill.