Traditional (Fee For Service)

A Traditional health plan allows you the most freedom of providers, as it will allow you to choose any doctor or hospital you would like.  As with any plan type, you will have pros and cons.  Here are some of the cons:

• The premium will typically be much higher than a managed care plan.
• The insurance company will typically only pay based on usual reasonable and customary charges. This may differ dramatically from the price your provider charges.  If you are a part of an HMO or PPO, the providers have worked out a discount with the network, which you will not be entitled to if you are on a traditional plan, considering you are choosing not to take part in a network managed plan.  You will be responsible for any costs over the usual reasonable and customary charges.