What Does A Fee For Service Health Insurance Plan Entail?
By: Health Insurance
Submitted: 2009-11-12 10:59:50 | Word Count: 481
Fee-For-Service Health Plans Offer A Lot Of Freedom For Policyholders
There are many types of health insurance plans available, and one popular type is known as a fee-for-service health insurance plan. With this type of plan your insurance company will cover part of the fees that you are charged when you receive medical care. This type of policy is also referred to as a indemnity plan. A fee-for-service plan is superior to many types of health insurance policies because you get a lot of freedom when choosing health care providers and facilities. With most plans you are able to choose any doctor or hospital you want anywhere in the country.
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Blue Cross Blue Shield Insurance Company is one of the best-known companies that provide the fee-for-service plan. However, many other insurance carriers also provide this type of plan. It is common for this type of plan to be offered through employers or through trade associations in order for the policyholders to get group rates. Although group rates are many times available, this type of insurance policy is usually one of the most expensive types of health insurance.
Most Fee-For-Service Plans Have Some Basic Similarities
Different health insurance companies set up their fee-for-service health plans differently, but most have the same basic layout. Each month the insured individual pays what is called a premium. Belonging to a group insurance plan through an employer, for example, can lower the policy’s monthly premium significantly. When you receive health care, before the insurance company pays out any money the policyholder covers a deductible.
A typical insurance deductible can be between $250 and $500 and has to be met once each year. Once the yearly deductible is met, the policyholder and the insurer will share the expense of the health care. For example, the insured individual may have to pay 15 percent of the incurred medical fees, this is known as the coinsurance, and the health insurance company is responsible for the remaining 85 percent. Also, most fee-for-service health insurance plans have a cap on them. The cap is the maximum amount of money that the policyholder will have to pay out of pocket each year before the insurance company covers 100 percent of medical expenses.
Fee-for-service medical plans are among the best type of medical coverage available, however many times with these plans you will need to keep good records of your medical bills, and you may be required to send forms into your insurance company before they pay out any money.
