What is a fee-for-service plan?

A fee-for-service plan is a type of health insurance plan in which the patient pays for each medical service they receive. The insured will usually pay a pre-determined amount of money for each medical service, such as a doctor visit, lab tests, medication, surgery, etc. instead of having just one large deductible or copayment for all services. Insurance companies commonly refer to fee-for-service plans as “indemnity plans” or “traditional plans.” In California, health insurance companies are required to offer at least one fee-for-service plan in order to provide customers with the most amount of coverage options. This type of plan can be beneficial for people who are often seen by multiple doctors, want to choose their own health care provider, or require frequent medical tests or procedures. With this type of plan, there is typically no network of doctors or other health professionals that the insured must use. As with any health plan, it is important for patients to understand all their coverage options before making a decision. Fee-for-service plans typically have higher premiums, deductibles, and copayments than other types of health insurance plans. It is important to compare the costs and benefits of the different plans to determine which one is the best fit for you.

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What is a fee-for-service plan?

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