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Charging a fee for each service performed: a fee-for-service health insurance policy.
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Medicaid saved money with the managed care plans, but the patients in the fee-for-service plan had "significantly lower costs" than those who were in managed care.
For example, participants who use Medicare Parts A and B and join a FEHBP fee-for-service plan usually have access to first dollar coverage--deductibles and co-insurance waived--for non-prescription medical care provided by the plan.
So, instead of saving 5 percent on these HMO enrollees, the government actually spends 5.7 percent more on these healthy oldsters than if they had received exactly the same medical care under the fee-for-service plan. And some economists estimate that the 95 percent reimbursement race may be 36 percent higher than the HMO's actual cost of providing care to those hale seniors.
A 1990 Wisconsin survey of five HMOs found that, "for many families, financing certain health care services which no insurance plan will cover will be a more difficult task than choosing between the HMO and a fee-for-service plan." High levels of satisfaction were based on good relationships with physicians and other providers, over-all low costs, and reduced paperwork.
Using firm data, Barringer and Mitchell obtained the following results: if the workforce aged by ten years, from 40 to 50, there would be a substantial increase in the demand for a traditional fee-for-service plan; both older workers and younger workers, faced with a range of premiums will choose the less expensive option other things equal; for all ages, a higher deductible reduces the chance that a given plan will be selected; more highly paid workers are more likely to select a traditional fee-for-service plan over other options.
ASIM's legislative agenda reiterates its call for a POS requirement and calls on Congress to ensure that all individuals have a choice of a fee-for-service plan in any reformed health system.
It also increases employee payments for family coverage from $312 to $1,040 in 1994 and up to $1,560 in 1995 under the fee-for-service plan, and from $312 to up to $832 in 1995 and up to $1,040 in 1996 under the health maintenance organization plan.
Each health alliance must offer at least three plans: an HMO plan, a PPO plan, and a fee-for-service plan. But it is important to remember that all three of these plans must cover the same services.
"There's the fee-for-service plan, where you have a $200 deductible, and the preferred provider network, where you pay only $10 a visit.
Rated the best value of any fee-for-service plan by the Washington Consumer Checkbook's Guide to the FEHBP, the Mail Handlers plan has 510,000 enrollees and covers 1.2 million people.
A typical PPO plan offers employees two options: the employer's standard fee-for-service plan and the PPO network.