Fee-For-Service (FFS) - Health Insurance Definition
Some insurance policies include
a Fee For Service plan. Here’s how it works.
When you go to the doctor, your insurance plan
pays a specific amount for that office visit.
Usually, the plan works like a co-insurance
plan. You, as the covered party, pay in the deductible
amount first. From the time you meet that deductible,
the insurance company pays a certain percentage
of any doctor’s office visits.
The Fee For Service plan is sometimes called
an “indemnity plan.” This is the kind
of insurance most available two decades ago but
it has become less widely available and less commonly
selected today, mainly because of the high cost
of providing this type of coverage.
Before you choose the FFS plan, pay attention
to the details. Compare the cost of the premium
between this and other plans. You’ll likely
find the FFS among the most expensive plans. Next,
what is the deductible amount? While a large deductible
means a lower premium, can you really afford to
pay all your health care costs until that deductible
is met?
Finally, consider what types of health care you
and your family usually require. Does your doctor
do X-rays, blood work and other minor tests in
his office? If so, a co-payment
insurance plan will pay for that entire visit
except the amount of the co-pay. Talk to your
broker
about the possibility of a FFS plan before you
decide this is - or isn’t - the insurance
for you. |
