Which term describes payment to a health care provider for each medical service rendered?

• A. Fee-For-Service Payment
• B. Distributed Health Care
• C. PPOs
• D. Premium

Answer: (A)

Paying providers for each service separately is fee-for-service. In this model, a clinician or facility bills for every individual service—an office visit, a lab test, a procedure—and reimbursement is tied to the specific service provided. Because payment rises with the number of services, this approach can incentivize offering more procedures. By contrast, a premium is the amount someone pays to maintain health insurance coverage, not a charge for a particular medical service. A PPO describes a managed care plan with a network and negotiated rates; payments are influenced by those negotiated fees rather than being tied to each service’s standalone price.