Fee for Service (FFS)

FFS coverage offers flexibility in exchange for higher out-of-pocket expenses, more form filing, and higher premiums.

Here are the advantages and disadvantages :

Fee for service advantages :

You may choose your own doctors and hospitals.

You may visit any specialist without getting permission from a primary care physician.

FFS disadvantages :

There's typically a deductible (anywhere from $500 to $2,000) before the insurance company starts paying claims, and then doctors are reimbursed about 80 percent of the bill while you pick up the remaining 20 percent.

You might have to pay up front for medical and hospital services, and then submit the bill for reimbursement.

FFS plans pay only for "reasonable" medical expenses. If your doctor charges more than the average for your area, you will have to pay the difference.

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