Medical Subject Headings (MeSH): Fee-for-Service Plans

Fee-for-service plans in healthcare are a type of payment model where healthcare providers are paid for each individual service or procedure they perform. This can include office visits, laboratory tests, diagnostic imaging, and surgeries. Patients typically pay a copayment or coinsurance for each service and the remaining balance is covered by their insurance company.

One of the main advantages of fee-for-service plans is that they provide patients with more flexibility in terms of the healthcare services they can receive, as they are not limited to a specific network of providers. Patients can choose their own healthcare providers and are not restricted to a specific list of in-network providers.

One of the main disadvantages of fee-for-service plans is that they can lead to higher healthcare costs as providers have a financial incentive to perform more services and procedures, which can lead to overtreatment and higher healthcare costs. Additionally, patients may not be aware of the cost of the services they receive, which can lead to surprise medical bills.

Fee-for-service plans are less common in recent years as alternative payment models such as the value-based care model, where healthcare providers are paid based on the quality of care they provide rather than the quantity of services, are gaining popularity.