PFR in medical terms most commonly refers to Patient Financial Responsibility.
Understanding Patient Financial Responsibility
Patient Financial Responsibility (PFR) is the portion of healthcare costs that a patient is obligated to pay out-of-pocket. This arises from the fact that health insurance does not typically cover 100% of medical expenses.
Components of PFR:
- Deductibles: The amount a patient must pay before their insurance starts covering costs.
- Co-payments: A fixed amount a patient pays for a covered healthcare service.
- Coinsurance: A percentage of the cost of a covered healthcare service that a patient pays.
Example:
Let's say you have a health insurance plan with a \$1,000 deductible, a \$30 co-payment for doctor visits, and 20% coinsurance for hospital stays.
- If you visit the doctor, you'll pay a \$30 co-payment.
- If you need a hospital stay costing \$10,000, and you haven't met your deductible yet, you'll pay the first \$1,000 (your deductible), and then 20% of the remaining \$9,000 (which is \$1,800). Your insurance would cover the remaining \$7,200. Your PFR would be \$2,800 (\$1,000 + \$1,800).
Why is Understanding PFR Important?
Understanding your PFR helps you:
- Budget for healthcare expenses.
- Make informed decisions about treatment options.
- Avoid unexpected medical bills.
