Final answer:
In a fee-for-service plan with a $6,500 deductible, the insured must pay the first $6,500 of health expenses themselves. After this deductible is met, they may still face co-insurance or co-payments depending on their specific insurance policy.
Step-by-step explanation:
In a fee-for-service health insurance plan with a $6,500 annual deductible, the policyholder is responsible for paying the first $6,500 of their health expenses out-of-pocket before their insurance coverage kicks in to pay for any further costs. This type of plan is structured so that medical care providers get compensated for each service they deliver, rather than receiving a fixed payment, as is the case with a Health Maintenance Organization (HMO). After meeting their deductible, the policyholder may still be responsible for additional costs such as co-insurance payments, which is a percentage of the medical expenses that the insured must pay even after the deductible has been met, or co-payments, which are fixed amounts paid for specific services.