Final answer:
Cindy uses a Health Savings Account (HSA) to pay for her medical visits with pre-tax money, which is separate from traditional health insurance and its associated costs like deductibles and co-insurance.
Step-by-step explanation:
Cindy pays for her doctor visits with pre-tax money. Her plan is not attached to an insurance plan and is known as a Health Savings Account (HSA) spending account. HSAs are designed to help individuals save for qualified health expenses on a tax-advantaged basis. They are different from traditional health insurance policies, which typically involve a deductible, or a fixed amount that must be paid before the insurance starts covering costs. With traditional insurance, there might also be fees associated with co-insurance or co-payments for services rendered. Unlike a fee-for-service arrangement where medical care providers are paid per service, or organizations like Health Maintenance Organizations (HMOs) which receive a fixed fee per person, HSAs provide individuals with the opportunity to pay for medical expenses directly.