Although on average, premiums have risen faster for HMOs than for fee-for-service plans
in FEHBP, their total cost to an enrollee is usually far lower.
All representatives selling products on behalf of a plan sponsor will have to pass a written test demonstrating familiarity with Medicare and fee-for-service plans
Thus, one would expect managed fee-for-service plans
to have hospital days per 1,000 in the mid-400s per 1,000 enrollees.
As government contributions sink, private fee-for-service plans
can provide an escape hatch from rationing.
Prior research has shown that some prepaid forms of health care financing incur lower utilization/expenditures than fee-for-service plans
for outpatient mental health care (Diehr, Williams, and Martin 1984; Wells, Manning, and Benjamin 1986; Norquist and Wells 1991).
Employees enrolled in HMO'S pay a lower percent of their total costs in out-of-pocket expenses than do employees covered by a fee-for-service plan
because of the different structures of these plans.
Only 14% of workers are enrolled in health maintenance organizations (HMOs), 9% in a point-of-service (POS) plan, and less than 1% in a conventional fee-for-service plan
. Also of interest to physicians:
Under a fee-for-service plan
, you and your insurance company each pay a portion of your health care expenses.
Since the 1980s, people eligible for Medicare have been able to choose between the regular fee-for-service plan
, under which the federal government pays a set fee to health care providers for each service provided, and Medicare Advantage (MA), whereby the government pays private health plans a fee for each individual they enroll.
Discount: This option is a fee-for-service plan
that offers a range of discounts for all levels of treatment including orthodontics.
What is a Medicare Advantage private fee-for-service plan
Most Medicare beneficiaries can choose to receive benefits through the original Medicare fee-for-service program, or through a coordinated care plan (including Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Provider-Sponsored Organizations (PSOs)), or a private fee-for-service plan
that reimburses providers on a fee-for-service basis.