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Fee For Service Plans
Your healthcare options are plentiful these days and it's hard to keep track of new variations and terminology..While it's picked up a new name, Fee-for-Service Coverage, (aka Indemnity Coverage), is traditional health insurance the same health coverage your grandparents had.
Fee-for-Service coverage offers you a rare level of freedom when it's time to choose a doctor, surgeon, hospital or clinic. You wonıt have to wait for treatement in a medical emergency or unexpected illness. You do pay a yearly deductible and a coinsurance rate, but once theyıre fulfilled your insurer will be paying the restıregardless of cost.
What Should I Be Aware Of?
Fee-for-Service coverage is more expensive than an average managed care plan, but it is also more versatile. That's not to say that it won't have restrictions.
For example: Your Fee-for-Service plan may not offer coverage for preventative care; so check-ups, routine office visits, vaccinations, etc. could end up your responsibility. This can make Fee-for-Service plans impractical for large families that only require regular doctor visits and preventative
health services.
How Do I Decide Which Fee-for-Service Plan Is Right for Me?
- Once you pay your annual deductible, you'll share your medical bills with your insurance carrier (your portion is called "coinsurance"). You might pay 20% to 30% of your bills while your insurer pays 80% to 70%. Itıs important to know what your coinsurance rate will be before selecting a plan.
- Most Fee-for-Service plans have "caps" that define the limits of what you pay for healthcare each year. Your cap may be as low as $1,000.00 or as high as $5,000.00 and wonıt include a monthly premium. You should know exactly what that number is before you commit.
- There are two types of Fee-for-Service plans. Basic Protection, plans pay for hospital rooms, certain supplies and services--such as x-rays and prescription medications, in or out of hospital surgeries and doctors visits. Major Medical plans cover costs such as long, costly illnesses or injuries.
A Fee-for-Service plan offers you care in a crisis that is both comprehensive and immediate. Fee-for-Service plans are great for avoiding the bureaucratic roadblocks or extended waiting periods built into other managed care plans, but are not as economical for large families or single women needing coverage for regular checkups.
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