A third-party payer is any person, entity, or program that is, or may be, liable to pay for any medical assistance provided to a Medicaid recipient. The most common sources of third-party resources which may be available to children covered by Medicaid include:

• Group medical insurance provided through a parent’s employment.
• Private medical insurance paid for by the child’s parents or other relatives.
• TRICARE, formerly known as the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS). This is a health care program of the U.S. Department of Defense Military Health System. TRICARE provides civilian health benefits for military personnel, military retirees, and their dependents, including some members of the reserve component. The TRICARE program is managed by TRICARE Management Activity under the authority of the assistant secretary of defense (Health Affairs).
• Direct medical providers who provide medical services at no cost to the child such as military and public health clinics.
• Liability and casualty insurance and court settlements. Usual sources of payment for medical expenses or accidental injury situations are:
  • Automobile insurance
  • Homeowner insurance
  • Landlord and tenant insurance
  • Products liability insurance
  • Medical malpractice insurance
  • Workers’ compensation
  • Lawsuit settlements
• Wills and estates. Instructions in a will may direct that proceeds of the estate be used to provide or reimburse for medical care provided on behalf of a Medicaid-eligible child.