Fee for Service Plans in Michigan
A Fee-for-Service plan is a traditional health insurance policy in which the insured uses any doctor or facility of his choosing, and then pays that provider directly. After payment is made, the insured then presents a claim to his insurance company. These sorts of plans are usually more expensive that HMOs or PPOs, but they allow the widest freedom of choice. The Fee-for-Service plan offers the same coverage throughout the country and, often, internationally. The insured person does not have to worry about finding an in-network doctor or facility.
Get Your Free Michigan Health Insurance Quote>>
Advantages of a Fee-for-Service Plan:
- Offers the maximum freedom of choice for doctors, hospitals, and pharmacies
- No referrals are necessary
- There is maximum choice of specialists
- The deductible may be low
- The patient is covered in any locality!
Disadvantages of a Fee-for-Service Plan:
- You may need to pay for service up-front
- All medical claims will have to be submitted in order for you to be reimbursed. All receipts would have to be kept, with copies filed at the time claims are filed. Some doctors will file for you, but you may need to take care of this chore yourself.
- You will still need to pay co-insurance after your deductible is met.
- This type of plan is more costly than other types
- Preventive care may not be covered as a separate category, unlike in other plans.
Fee-for-Service Plan Details
The focus of a Fee-for-Service plan is to allow maximum freedom of choice while providing coverage above a set amount (your deductible). You need to be able to pay the deductible and co-insurance (or the agreed percentage of costs above the deductible) out of your own funds. Most plans cover 70 to 80 percent of the expenses above the deductible.
Young, healthy people who are seldom ill would like this plan. Also, this type of health insurance may be ideal for business people who travel a great deal and need coverage no matter where they are. It might not be the best choice for families with young children, who need frequent doctor visits and a higher level of preventive care. It is also not the best choice for someone who would find the extra paperwork difficult.
Different varieties of these plans include basic coverage, major medical, and comprehensive plans (which include both basic and major medical coverage).
Get Your Free Michigan Health Insurance Quote>>