What is “the difference between FFS payments and insurance payments” in medical billing?

Difference Between FFS Payments and Insurance Payments in Medical Billing

FFS (Fee-for-Service) payments are made for each service provided, while insurance payments may involve negotiated rates or bundled payments for covered services.

Difference Between FFS Payments and Insurance Payments in Medical Billing Explained

In medical billing, FFS payments allow providers to bill for every service individually, while insurance payments may follow negotiated contracts with payers. Insurance payments can also involve capitation or bundled payments, where providers are paid for managing a patient’s overall care.

For example, a provider in an FFS model bills separately for each test and procedure, whereas an insurance payment might cover the entire visit.

Discover common acronyms and abbreviations in Medical billing glossary.

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