Which of the following best describes a distinctive characteristic of fee-for-service health insurance?

Fee-for-service health insurance is primarily characterized by its payment structure that compensates healthcare providers for each specific service rendered to patients. This model allows for billing and reimbursement for individual procedures, consultations, tests, and treatments separately, which can result in a more comprehensive record of services utilized by a patient. It emphasizes the quantity of care delivered, as providers are incentivized to offer multiple services because they are paid for each one independently.

This is different from other models that may focus on holistic care or preventive measures, as fee-for-service does not prioritize the overall health outcomes or the management of care in a bundled setting where multiple services are provided for a single payment. Moreover, unlike managed care plans, fee-for-service does not inherently guarantee network coverage, leaving patients often free to choose any provider without restrictions.