Fee for Service Basic Facts

Medical insurance is a necessity for offsetting the trauma and expenses that can occur from an accident, disease or other debilitating medical situations. There are a variety of health care plans to choose from but if you like having the freedom of choice in selecting your own doctors, a fee for service medical plan may be to your liking. Of all the types of health insurance available to American consumers, the fee for service plan (also known as indemnity health insurance) provides members with the biggest degree of freedom as far as medical care selection as there is no service networks restricting you.

If you like the sound of absolute freedom with your doctor selection, then there are some other fee for service facts you need to consider before signing on the dotted line:

  • Fee for service health insurance is the most expensive type of medical insurance for policy holders
  • The premiums for fee for service health insurance is high because there is no service network that can control the costs of the medical treatment that consumers will be charged
  • Fee for service health insurance members tend to need to meet a deductible (the amount varies) before their benefit co-payments kick in
  • Typically insurers will pay a portion of 75%-80% for a members medical claims leaving the rest for the policyholder to pay out of pocket
  • Those opting for fee for service health insurance are responsible for paying their medical expenses out of pocket and after meeting their deductible, they will be reimbursed
  • Fee for service medical insurance is typically broken down to two parts: basic coverage that covers thecost of doctor visits, hospitalization, surgery, etc. and major medical that pays for the majority of the bills in case of serious illness or injury
  • Fee for service health insurance will more than likely limit its coverage to “usual, customary and reasonable” treatment and fees
  • Fee of service health insurance may also pay a predetermined amount with limits as described in the original policy terms

***If you have more questions about the different types of health insurance available to you, visit Go Insurance Rates for more information. The knowledge you acquire could help you save big on your health insurance rates.***