Self-Employed? How about a Fee for Service Plan?

You love being your own boss as there is no need to explain why you’re late, among other perks. The only downside to being self-employed is being responsible for finding and paying your own medical insurance. The options are overwhelming, and choosing not only a cost efficient plan but one that will cover all your needs can be especially challenging. One option to consider is a fee for service plan for self-employed individuals.

A fee for service plan is a type of medical insurance policy that provides participants the freedom to choose whatever doctor they want to see as there is no managed-care network limiting the members choice. But for this type of flexibility, fee for service plans are the costliest medical insurance option. The premiums are higher as the rates that out-of-network physicians charge are at their discretion, deductibles in the thousands of dollars range need to be met before the co-payment benefits kick in, and then the insurance company will only reimburse the member for a portion of their medical expenses, typically about 80%. There are usually out-of-pocket caps that will limit the type of additional financial burden you will need to take on when enrolling in a fee for service plan for the self-employed.

Despite that, fee for service plans are a viable option for the self-employed demographic, especially if they travel for business. With a fee for service plan, the member can have the choice to seek medical attention in whatever area they are traveling to, and do not have to seek the permission of a managed-care provider.

Self-employed individuals seeking fee for service plans should know they are also called indemnity plans. This type of insurance offers the most flexibility for their members, but members are responsible for paying their fees up front, filling out their own claim forms, meeting their deductible, then waiting for reimbursement.

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