What is a person who performs services for another under an expressed or implied agreement called?

Prepare for your Health Insurance Billing Exam. Utilize flashcards and multiple choice questions, each with explanations. Boost your readiness!

The term for a person who performs services for another under an expressed or implied agreement is known as an independent contractor. This classification reflects a specific type of work relationship where the individual operates their own business or practices and provides services to clients under terms agreed upon, rather than working as an employee of the organization.

Independent contractors typically retain control over how they perform their work and are responsible for their own taxes and benefits, distinguishing them from employees who are typically subject to more oversight and receive benefits such as health insurance or retirement plans from their employer.

This classification is important in the context of health insurance billing, as independent contractors often require a different approach to contracts and billing processes compared to traditional employees. Understanding this distinction is crucial in ensuring compliance with taxation and labor laws, as well as in facilitating accurate reimbursement for services rendered.

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