The Federal Employees Benefit Program includes which type of health plans?

The Federal Employees Benefit Program (FEHB) includes various types of health plans designed to provide comprehensive health coverage to federal employees and their dependents. The correct answer identifies that this program offers fee-for-service plans alongside prepaid plans.

Fee-for-service plans allow beneficiaries to choose healthcare providers and services without requiring referrals. Typically, these plans involve a deductible and coinsurance, enabling the insured to pay for services as needed. Conversely, prepaid plans, commonly associated with health maintenance organizations (HMOs), operate on a system where members pay a set premium for access to a network of doctors and facilities, promoting preventive care and simplicity in planning health expenses.

By recognizing that the FEHB includes both fee-for-service and prepaid health plans, it's clear that beneficiaries can choose between flexibility in provider selection and more structured prepayment models, catering to a wide range of healthcare needs and preferences. This combination is indicative of the program's aim to provide diverse healthcare options to federal employees.