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all right in this video im talking about what is fee for service payment in health insurance and this of course has to do with the relationship between the doctor and the insurer so how much does the insurer pay the doctor well fee for service is actually classic its just where the doctor puts together a bill so that the doctor says i did the following things to the patient i did surgery and im charging nine thousand dollars for that i consulted with the patient a few times and im charging 2000 for that and i did some diagnostic testing im charging 1 000 and the doctor then sends that bill to the insurer and the insurer pays it so very simple now historically this got to be a problem because of course theres an incentive for the doctor to put really high price tags on the doctors things theyre doing and that led to a a huge rise in the cost of health insurance for a while medical care started to look like it was not sustainable so in which case we thats when managed care came