In these traditional fee-for-service group health insurance plans, the patient chooses whichever doctor and hospital he or she wants to use. The plan reimburses the patient for a portion of the expenses paid for the services. (3)
Traditional fee-for-service group health insurance plans. Employees may pay a portion of monthly premium, deductible, coinsurance, and/or copayment. Providers are paid on cost-plus, retroactive reimbursement system.
An insurance policy in which beneficiaries are allowed total freedom to choose their health care providers. Those providers are reimbursed a set fee each time they deliver a service. Reimbursement is usually limited to a percentage of customary and reasonable charges (which may be less than the billed amount). Also see fee for service.