new twists to using the term "fee for service"

Luring Customers From Medicare - New York Times: "The leader by far in private Medicare fee-for-service, with more than half the total members, is Humana. UnitedHealth and WellPoint are also big players.
John M. Bertko, a Humana vice president, says benefits included having nurses stay in touch with discharged hospital patients with chronic diseases to make sure they were following doctors’ orders.
Other selling points for the private insurance plans include predictable out-of-pocket co-payments — typically $5 to $20 for doctor visits. That compares with the uncertainties patients face under traditional federal Medicare, in which they are responsible for 20 percent of whatever the doctor charges. "

There are some good points made here, pro and con. I'm questioning the use of the term "fee for service," though. How can we call something that requires a monthly premium, is subsidized by the government, and has deductibles "fee for service"? What is this newspeak that twists and torques basic, simple concepts until we can barely recognize them?