Question

How does fee-for-service insurance differ from private insurance?

Answer 1

Fee-for-service is a system of health insurance payment in which a doctor or physician is paid a fee for each particular service regardless of the outcome. While on the other hand the private health insurance plans are designed to split the cost between the patient and the insurer, making medical care more affordable for him. These cost-sharing methods come in the form of deductibles, co- payments, and coinsurance.

Answer 2

Fee-for-service is an insurance model where the services are paid for directly or by reimbursement separately for each covered medical expense. The services aren't bundled and the payment is dependent on quantity rather than the quality of care. On the other hand, private insurance is a type of healthcare where the services are specified in writing or a contract indicating the coverage which usually includes all care per illness. It is usually offered by employers to employees.