What type of insurance plan is referred to as a fee-for-service model?

The fee-for-service model refers to a type of health insurance plan where providers are paid for each specific service performed. This structure allows patients considerable freedom to choose their healthcare providers and receive a wide range of services without requiring a referral from a primary care physician.

Indemnity insurance, also known as traditional health insurance, epitomizes the fee-for-service model. Under this plan, patients can visit any doctor or specialist and file a claim for reimbursement. This setup encourages a broader selection of medical care and specializations, as patients are not limited to a network and can seek treatment wherever they prefer.

Other types of plans, such as HMOs (Health Maintenance Organizations) and PPOs (Preferred Provider Organizations), often feature network restrictions and may require referrals for specialists, thus deviating from the core principle of a fee-for-service model. POS (Point of Service) plans, while allowing some flexibility, still primarily focus on managed care characteristics similar to HMO and PPO models, indicating a preference for cost control over the unrestricted doctor-patient relationship that fee-for-service allows.