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A form of health insurance where the policyholder pays for medical expenses out-of-pocket and receives a reimbursement from the insurer. That is, a fee-for-service plan reduces the insurer's risk that the plan might be abused by requiring the policyholder to pay for expenses first, and only reimburses him/her afterward. Generally speaking, a fee-for-service policy includes some co-insurance. Some medical practices require fee-for-service payment to reduce the risk that it cannot perform a procedure if the insurer denies coverage. That is, the practice expects the patient to pay when the service is given and to file with the insurer for reimbursement afterward.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


When you're covered by fee-for-service health insurance, you pay your medical bills and file a claim for reimbursement from your insurance company.

Most fee-for-service plans pay a percentage -- often 70% to 80% -- of the amount they allow for each office visit or medical treatment. You pay the balance of the approved charge plus any amount that exceeds the approved charge.

Your share of the approved charge is called coinsurance.

If you are enrolled in Original Medicare, which is a fee-for-service plan, your healthcare provider will file the insurance claim on your behalf.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The fee for service, in contrast, offers a payment by service, so it creates individual episodes of care.
He cites a Pembroke Consulting study reporting that over 80% of distributors across 50 different industries plan to migrate some form of fee for service.
* Funding amounts in the categories of Title VII Part B, Title VII Part A, other federal, state, local, private, fee for service, other business activity, and other,
A few years ago some managed care plans began paying primary care physicians capitation and subspecialists fee for service. But that didn't work, said Debbie Welle-Powell, executive director of Gates Clinic, Denver.
Fee for Service: also known as indemnity insurance, is the traditional method that doctors and other health care providers use to set their fees for each procedure or service they perform.
Payments to physicians in Germany are based on a relative value scale that pays a fee for service on the basis of patient encounters.
Clinton's academic experts are convinced that a reformed, and more efficient, fee-for-service system should not be put in place because enrollees might choose fee for service over managed care.
If one accepts such a basic premise, the call for continuing "fee for service" will not be heeded.
Group practice physicians generally favor fee for service arrangements, yet studies of those providing services for HMOs show mixed preferences for capitation versus fee-for-service payment and there is evidence suggesting that an increasing number of physicians practicing in fee-for-service group practices are being paid on a salary or modified salary basis.(7,9)
Among the 38 services outlined in the ministerial decision is the fee for services provided to non-Omani students attending public schools, which is set at $260.
Currently iMar charges sellers a 20% fee for services and buyers are charged a $1.50 reservation fee.