Which pair correctly identifies the FEHB plan types?

Which pair correctly identifies the FEHB plan types?

• A. HMO and PPO
• B. Indemnity and managed care
• C. Point-of-service and fee-for-service
• D. Fee-for-service and prepaid

Answer: (D)

FEHB plan types fall into two broad categories: fee-for-service and prepaid. A fee-for-service plan pays the provider after the service is delivered, with the member typically sharing the cost through deductibles and coinsurance, and the member often has the freedom to see any provider. A prepaid plan, usually represented by HMOs, requires enrollment in a network and uses fixed premiums or copays, with most care obtained through network providers. This pairing matches how FEHB categorizes plans, making it the best choice. Other options mix in more specific plan features (like HMOs or PPOs) or broader concepts (indemnity, managed care) that aren’t the official FEHB two-category distinction.

FEHB plan types fall into two broad categories: fee-for-service and prepaid. A fee-for-service plan pays the provider after the service is delivered, with the member typically sharing the cost through deductibles and coinsurance, and the member often has the freedom to see any provider. A prepaid plan, usually represented by HMOs, requires enrollment in a network and uses fixed premiums or copays, with most care obtained through network providers.

This pairing matches how FEHB categorizes plans, making it the best choice. Other options mix in more specific plan features (like HMOs or PPOs) or broader concepts (indemnity, managed care) that aren’t the official FEHB two-category distinction.