What is fee for service health care

Things have changed a lot since the 1970s, when most people in the United States who had health insurance had indemnity insurance. Indemnity insurance is often called fee-for-service or traditional health insurance.

This type of coverage generally assumes that the medical provider (usually a doctor or hospital) will be paid a fee for each service provided to the patient—that is, you or a family member covered under the policy.

With fee-for-service insurance, you go to the doctor of your choice, and you submit a claim to the insurance company for reimbursement. Often, your doctor or hospital will submit the claim for you. You will only be reimbursed for “covered” medical expenses; that is, the covered services listed in your plan’s benefits summary.

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