A fee-for-service (FFS) plan is a type of health insurance plan in which health care providers are reimbursed by insurance companies based on each service rendered. With these plans, there is usually no network, and the policyholder can see any provider he or she wants. These plans are often more expensive than alternatives.
Fee-for-service plans are becoming less and less popular in the health insurance industry. This is because other plan types such as HMOs and PPOs are often cheaper for the health insurance companies to run. HMOs and PPOs both include networks of providers which the health insurance company prefers working with. However, regardless of if a plan is an FFS, an HMO or a PPO, the goal of the health plan is to make it possible for people to get coverage for health care expenses.
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