Every week, Asinta brings you a short glossary of commonly, and sometimes uncommonly, used terms in the world of employee benefits.
Fee for Service Plans
A plan that finances, but does not deliver, health care services; the plan allows participants the choice of any provider, without affecting reimbursement. Employers pay premiums to a private insurance carrier to provide a specific package of health benefits. Some employers may choose to self-fund a fee-for-service plan, in which case the employer, as opposed to an insurance company, assumes responsibility for payment of all eligible benefits.