Group Fee For Service Plans Explained

What’s the most popular benefit an employer can offer? The easy answer: employee health insurance. Deciding which kind of plan to buy isn’t easy — especially for smaller firms. With so many healthcare options available it’s hard to keep track of them all.

Fee-for-Service Plans — also known as indemnity plans — are the most traditional health insurance policies. They offer your employees a rare degree of freedom when it’s time to pick a doctor or hospital.

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With Fee-for-Service Plans, employees don’t need to wait for treatment if they have a medical emergency. You share the cost of a yearly deductible and a coinsurance rate, but everything else is covered by your insurance carrier — regardless of the cost.

What You Need To Know

Taking on a Fee-for-Service group plan will be more expensive than having managed care benefits, but it will also provide your employees with a wider range of healthcare options.

That’s not to say that it won’t have restrictions.

For example: Your Fee-for-Service plan may not offer your employees coverage for their preventive care needs. Check-ups, routine doctors’ office visits, and vaccinations could end up their responsibility. That tends to make indemnity group plans an unwieldy option for a business whose employees have families requiring regular doctors’ visits and preventive care services.

There are two kinds of Fee-for-Service insurance policies:

• Basic protection plans gives your employees coverage for hospital rooms, supplies, x-rays, prescriptions medications, doctors’ visits and outpatient surgeries.
• Major medical plans give your employees coverage for inpatient surgeries, extended hospital stays, and costly illnesses or injuries.

Whichever group plan you end up choosing, remember that as your business grows your employees’ insurance needs may change dramatically. The kind of plan that worked well for a staff of ten may be a disaster in a staff of thirty or forty.

Want to start comparing your group health options? Use our free service. We’ll match you with qualified members of our nationwide network of insurance agents. Just fill out a short online form, and you’ll be contacted with free quotes.