What is fee-for-service health insurance?

Fee-for-service (FFS) health insurance is a traditional payment model where healthcare providers are paid for each specific service or treatment they deliver to patients. In this system, patients can choose their healthcare providers and receive a wide range of services, with costs typically split between the insurer and the patient, often requiring co-pays or deductibles. While FFS can offer flexibility and choice, it may also lead to higher overall healthcare costs and potential overutilization of services, as providers are incentivized to deliver more treatments.