Which statement best describes the payer of last resort in the billing process?

• A. The first payer that processes the claim
• B. The payer that pays after other sources are exhausted
• C. A payer that denies all claims
• D. A payer that handles only medication costs

Answer: (B)

The payer of last resort is the payer that covers the remaining costs only after all other sources of payment have been exhausted. In billing, claims flow through a hierarchy: a primary payer pays first, and if there's any balance left, a secondary payer may cover part or all of that, with the payer of last resort stepping in to pay what remains. This role often comes into play when no other payer is responsible or when coverage runs out, ensuring the patient is not left with the entire bill.

This is why the correct statement describes paying after other sources have been exhausted. The other options describe different ideas: the first payer to process the claim is the primary payer, not the last resort; a payer that denies all claims isn’t a defined role; and a payer that handles only medication costs is not about the ordering of payment responsibilities.