Indemnity plans

The benefit of choosing an indemnity plan as your type of health insurance plan, otherwise known as a fee-for-service plan, is that it doesn’t bog you down into a single network of physicians. Indemnity plan holders are given the freedom to choose/visit the doctor of their choice. In the case of indemnity plans, the remaining bill is then submitted to the insurance provider who pays the covered expenses. (Typically this consists of approx. 80% of the bill, leaving indemnity plan holders to pay the other 20%) This type of health insurance plan generally has what is called an “out-of-pocket” maximum. After this kicks in, your health plan provider pays for all covered benefits.

What you should know prior to purchase?

Although the most expensive type of health insurance policy, indemnity, or Fee-for-service insurance gives you the most flexibility and freedom to go to the doctor / medical facility / health care specialist of your choice. After receiving treatment, you must submit a claim to your insurance company (doctor or facility generally handles submissions) in order to receive reimbursement. Indemnity plans are customized so as to fit the needs of each unique policyholder, and as such, you will only be reimbursed for healthcare expenditures specified by your policy.