A plan that uses the fee-for-service payment method and operates by means of a submittal and reimbursement method is called?

• A. Indemnity
• B. Fee for service
• C. Capitation
• D. Sliding scale

Answer: (A)

Indemnity plans operate on a fee-for-service framework where services are billed and reimbursed after the claim is submitted. In this setup, providers can charge for each service, and the insurer pays a portion based on a schedule of benefits, with the patient sharing costs through deductibles and coinsurance. The process hinges on submitting claims and receiving reimbursement, rather than relying on network contracts or prepaid per-patient payments. This aligns with the description of a plan that uses fee-for-service payment and works through submittal and reimbursement. Other options describe different payment or pricing structures—capitation uses a fixed monthly payment per patient to providers, sliding scale adjusts charges by ability to pay, and labeling the plan as fee-for-service refers to the payment method rather than the plan type itself—so they don’t fit as well.