What are the two types of fee-for-service plans?
What are the two types of fee-for-service plans?
A. Preferred provider organization (PPO) and health maintenance organization (HMO)
B. Medicare and Medicaid
C. Point of service (POS) and indemnity plans
D. Consumer-driven health plans and high-deductible health plans
Answer:
The two types of fee-for-service plans are Point of service (POS) and indemnity plans.
Fee-for-service plans are usually known as a health plan that reimburses medical providers (such as hospitals, physicians, or laboratories) for every covered service given to a patient. These plans vary from one to another, but most have two types of fee-for-service plans:
- Point of service (POS) and indemnity plans: These plans are the most traditional form of fee-for-service plans, allowing patients to choose their doctors and providers from their respective networks. POS plans offer coverage for in-network healthcare providers, while indemnity plans offer coverage for both in-network and out-of-network healthcare providers.
- Preferred provider organization (PPO) and health maintenance organization (HMO): These plans are commonly referred to as managed care plans. HMO plans provide services from healthcare providers with contracts with the insurance plan, while PPO plans offer reduced rates from providers within their network and typically require a co-payment.
Therefore, the correct answer to the question is C. Point of service (POS) and indemnity plans.