Prepaid Service Basis in Health Plans

What type of health plan pays benefits on a prepaid service basis?

1. Fee-for-service plan

2. Health Maintenance Organization (HMO)

3. Preferred Provider Organization (PPO)

4. Point of Service (POS) plan

Answer:

The Health Maintenance Organization (HMO) pays benefits on a prepaid service basis, unlike the other options which involve payment based on services used.

Among the options provided, the Health Maintenance Organization (HMO) plan is a type of health coverage that pays benefits on a prepaid service basis. In an HMO, health care services are prepaid, meaning the members pay a fixed monthly premium, regardless of how much health services they use in that month. On contrast, Fee-for-service plan, Preferred Provider Organization (PPO), and Point of Service (POS) plan usually involve deductibles, co-pays, or coinsurance based on the services used.

So, if you are looking for a health plan that offers prepaid service basis, HMO might be the right choice for you!