What does fee-for-service insurance reimbursement entail?

Fee-for-service insurance reimbursement is a model where healthcare providers are compensated based on the specific services they deliver to patients. This means that for each service rendered—such as an office visit, surgical procedure, diagnostic test, or other medical treatment—the provider bills the insurance company for the exact fee associated with that service. The reimbursement is tied directly to the amount charged for each service, thereby incentivizing providers to offer more treatments and services.

This model contrasts sharply with fixed or bundled payment approaches where providers receive a set amount regardless of the services actually performed. It also differs from models that promise complete coverage without patient cost-sharing, and it is not limited exclusively to emergency services; fee-for-service can apply to a range of healthcare situations beyond emergencies. Thus, the essence of fee-for-service reimbursement lies in its direct correlation between the services offered and the fees charged, making option B the correct answer.