With traditional fee-for-service health plans, an employer
purchases a policy from an insurance company and pays a premium
on a regular basis. A group health insurance policy is a
contract between the employer and the insurance company. The
employee does not receive a policy but only a certificate of
insurance under the employer's contract. In exchange for the
premium, the insurance company agrees to pay for certain
medically necessary items for the employees and dependent family
members that are included as covered items under the policy.
Under a fee-for-service plan, insureds are free to seek
necessary medical care from any physician they wish. With fee-
for-service, the insurance company pays for part of your doctor
and hospital bills.  The doctor often bills the insurance
company directly for the services provided, and the insurance
company pays for items covered by the policy. In some cases, the
insured may have to submit a completed claim form and attending
physician's statement.