46 Years Experience

State U.S. Licensed Agent/Broker


This is the traditional kind of health care policy.  Insurance companies pay fees for the services provided to the insured people covered by the policy.     


This type of health insurance offers the most choices of doctors and hospitals.    You can choose any doctor you wish and change doctors any time.   You can go to any hospital in any part of the country.  


With fee-for-service, the insurer only pays for part of your doctor and hospital bills.  This is what you pay:

    ·  A monthly fee, called a premium.

    ·  A certain amount of money each year known as the deductible, before the insurance payments begin.  In a typical plan, the deductible might be $250 for each person in your family, with a family deductible of $500 when at least two people in the family have reached the individual deductible.  The deductible requirement applies each year of the policy.  Also, not all health expenses you have count toward your deductible.  Only those covered by the policy do.  You need to check the insurance policy to find out which ones are covered.      


    ·  After you have paid your deductible amount for the year, you share the bill with the insurance company.  For example, you might pay 20 percent while the insurer pays 80 percent.  Your portion is called coinsurance.


To receive payment for fee-for-service claims, you may have to fill out forms and send them to your insurer.  Sometimes your doctor’s office will do this for you.  You also need to keep receipts for drugs and other medical costs.  You are responsible for keeping track of your medical expenses.


There are limits as to how much an insurance company will pay for your claim if both of you and your spouse file for it under two different group insurance plans.  A coordination of benefit clause usually limits benefits under two plans to no more than 100 percent of the claim.


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