Private Fee-for-Service plans are offered through independent insurance agencies. They are in the Advantage Plan category and an excellent option for beneficiaries who want to know exactly how much something will cost. Although this plan is offered through an insurance company, they contact Medicare and operate under certain rules to establish uniformity and consistency.
Fee-for-Service plans work by deciding upon predetermined amounts in which providers get paid for each specific procedure or appointment. Pricing may vary depending on location. Some Fee-for-Service options may utilize networks to suggest which providers should be used, while others may decide coverage based on other factors.
Drug coverage and specialists
Not all Fee-for-Service plans have drug coverage. If your current plan doesn’t include medication coverage, speak to an insurance agent about what additional insurance you can purchase.
Fee-for-Service plans do not require patients to obtain a referral before booking an appointment with a healthcare provider. This can be especially useful in situations when time is of the essence.