Which pairing correctly identifies the two health plan types in the Federal Employees Benefits Program?

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

Answer: (B)

In the Federal Employees Benefits Program, plans are categorized into two broad types: fee-for-service and prepaid. A fee-for-service plan (often called indemnity) lets you choose any provider, pay for services when they’re received, and receive reimbursement from the plan according to a set schedule. A prepaid plan covers care through a network for a fixed premium, with care typically managed by the plan (often requiring referrals) and with lower out-of-pocket costs inside the network. This pairing best matches how FEHBP classifies its plan options. The other pairings mix in terms like PPO, POS, or general “managed care,” which aren’t the FEHBP’s two primary plan-type categories.