C812 Task 1.docx Examining Healthcare Reimbursement Systems C812 Healthcare Reimbursemen

C812 Task 1.docx  Examining Healthcare Reimbursement Systems  C812 Healthcare Reimbursement  Task 1  A.Components of Insurance Plans  ï‚·Fee-for-service (indemnity) plan  The most traditional insurance plan is a fee-for-service (FFS) or an indemnity health insurance plan (InsuranceBudget.com, n.d.). This plan pays for quantity of the service rather than quality. This plan additionally is the most flexible when choosing a healthcare provider where there are no provider networks, so this means it is consequently the most expensive. The costs members are responsible for are a monthly premium, the deductible, and coinsurance (InsuranceBudget.com, n.d.). A premium is a monthly payment that is necessary to receive coverage. The deductible is the amount of money needed to pay out-of-pocket before an insurance plan starts paying for healthcare services (InsuranceBudget.com, n.d.). High deductibles mean lower monthly premiums and lower deductibles mean higher monthly payments. After the deductible is met, the member is responsible for their portion which is called coinsurance. This can be divided into different percentages, but insurance will usually pay the higher percentage once the deductible is met. It is important to make sure a FFS plan is best for all of your financial and healthcare needs.   ï‚·Managed Care Plans  Managed care plans have contracts with medical providers to deliver care for members at a reduced cost (MedlinePlus, n.d.). Managed care plans have a network that providers make up. O