Fee for Service Health Plans

A fee for service health plan is also known as an indemnity plan. But no matter what you call this type of plan, it offers both pros and cons. For this reason, you will want to closely examine a fee for service health plan before you decide to sign on the dotted line.

The nice thing about a fee for service health plan is that even though you will have to pay more out of pocket, you have much more flexibility. But along with this comes higher premiums as well.

Advantages

1. With a fee for service health plan you have the ability to choose your own hospitals, doctors, and providers. This flexibility is what draws so many people to fee for service health plans.

2. You can visit specialists without getting a referral from a primary care physician. Once again, this shows the overall flexibility of a fee for service health plan.

Disadvantages

1. A deductible has to be met with fee for service health plans. In many cases, this can start as low as $500 and range to $2,500 or more. Then once this deductible is satisfied the insurance company begins to pay claims.

2. You may be forced to pay medical bills up front, and then submit bills to the insurance company. In turn, you will be reimbursed by your insurer.

3. Most fee for service health plans will only pay for reasonable and customary expenses. So if your provider charges more than a “reasonable” amount you are going to be responsible for the difference.

As you can see, a fee for service health plan may or may not be right for you. Many people find that the advantages far outweigh the disadvantages; but this is not always the case. To make sure that you end up with the best health insurance you should research the details of fee for service plans as well as the many others.