Fee-for-Service health insurance pays the medical charges for the doctor visits of the policy holders. It covers the policy holder and all the beneficiaries. If you purchase fee-for-service health insurance, you have to submit a claim each time visits the clinic or hospital. You will only be covered if the expenses are listed in the policy agreement.
If the medical expenses are covered, a large percentage of the fee will be paid by the insurance company. The rest of the medical fee is billed to you. The reimbursement amount depends on the coinsurance and deductibles. The coinsurance is the amount that is covered by the insurance company. Different insurance companies will offer different amount of coinsurance reimbursement. Most of the fee-for-service policies will pay for 80% of the coinsurance. If the medical bill surpass the reasonable fee, the policy holder is responsible for paying the difference.
The deductible is the amount covered by you. It is paid along with the premium every year. You have to settle the agreed amount of deductibles in full before the insurance company will reimburse you. The average cost of the deductibles is in between $100 - $400 per person. If the health coverage covers more than one family, you have to pay $500.
Health insurance organizations have a limit for the medical coverage. The medical coverage limit is applicable to a calendar year. Some companies offer lifetime limits for the medical coverage, for example one million dollars. If the lifetime limit is less than one million dollar, you should not apply for the health insurance plan.
