Question

An insured's medical expense plan requires the insured to pay the medical care provider for each service rendered. The insurer then reimburses the insured. On what basis are benefits paid?

A. pre-paid
B. specified
C. comprehensive
D. fee-for-service

Answer 1

Benefits are paid on a fee-for-service basis in a medical expense plan where the insured pays the medical care provider upfront and is later reimbursed by the insurer.

Step-by-step explanation:

In a fee-for-service health financing system, the insured's medical expense plan requires them to pay the medical care provider for each service rendered, and then they are reimbursed by the insurer. Benefits are paid on a fee-for-service basis. This means that the medical care providers are paid according to the services they provide. The insured pays for each service upfront and is later reimbursed by the insurer based on the cost of the service.