Fee-For-Service Plan
Updated: 06 January 2025
What Does Fee-For-Service Plan Mean?
A fee-for-service (FFS) plan is a type of health insurance in which healthcare providers are reimbursed by insurance companies for each service rendered. These plans typically do not have a network, allowing the policyholder to see any provider they choose. However, FFS plans are often more expensive than other alternatives.
Insuranceopedia Explains Fee-For-Service Plan
Fee-for-service plans are becoming less popular in the health insurance industry because other plan types, such as HMOs and PPOs, are often more cost-effective for insurers. HMOs and PPOs include networks of providers with whom the insurance company prefers to work. However, regardless of whether a plan is an FFS, HMO, or PPO, the primary goal of the health plan is to provide coverage for healthcare expenses.
