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Fee-for-Service

A method of paying for health or medical services. Doctors and hospitals are paid for each individual service they provide to the patient. Bills can be paid in two different ways; paid by the patient who submits the claims to the insurance company or the provider can submit for reimbursement to the patient's insurance carrier.

Adverse Selection

Adverse selection occurs when healthy people opt out of purchasing insurance, and thus the premium prices rise, which then causes additional people to opt out.…