"Fee-For-Service" Health Insurance Plans
A fee for service plan (also called indemnity insurance) is a payment system in which health care providers are paid for each service that is rendered as opposed to a pre-negotiated amount or premium for every patient. Many PPO health plans are paid for in this way.
Fee for service plans offer choice to its members. The members choose their doctors and the facilities where they will be treated. This plan also provides for immediate medical treatment.
Fee for service plans have limitations. Preventative medicine is not covered which means that things like check-ups, office visits and immunizations must be paid for by the member. These expenses are not applied toward the deductible, either. For families and women who need regular check ups, this may not be the best choice.
Fee for service plans are expensive. Costs include a monthly premium, an annual deductible, and a per visit co-pay. Every fee for service plan is different. Be sure to research and compare options.
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