Indemnity Plans

Indemnity plans give you the ability to direct your own health care, which allows you to visit almost any healthcare professional, hospital or service provider you prefer. This provides the greatest amount of flexibility in a health insurance plan. This plan also aids in protection against the costs of medical expenses. Indemnity health plans are also referred to as, traditional indemnity plan or fee-for-service plan. 

How does an Indemnity plan work?

Under an Indemnity plan, the insurance company pays a predetermined percentage of the usual, customary and reasonable (UCR) rate for a given service, and the insured pays the rest. The UCR rate is the amount that healthcare providers in your area typically charge for any given service. The insured is not required to provide referrals for doctors or specialists chosen. You may decide to receive the majority of your basic care from a single doctor but the insurance company will not require you to select a primary care physician. An Indemnity plan may require upfront payment for services and then the insured can submit a claim to the insurance company for reimbursement. You also may be required to pay an annual deductible before the insurance company begins to pay on your claims. Once your deductible is met, the insurance company will typically pay your claims at a set percentage of the usual, customary and reasonable rate for the service. 

Is an Indemnity Plan Right for You and Your Family?

An Indemnity health insurance plan will produce the most advantages if the following beneficial to you:

• You're looking for a considerable amount of freedom in choosing which doctors or hospitals you visit.
• You prefer not to designate a primary care physician or obtain referrals for specialists.
• You are willing to pay a little more for your health insurance costs or deductibles.
• You are not concerned with selecting providers that are not vetted for costs. This means you will have to pay attention to how your choices affect your costs. You will not be apart of a network in an indemnity plan so the costs of the doctors and specialists you choose may extend beyond the definition of the UCR. 
• You live in a geographic region where access to the doctors and medical services you want will not be included in an HMO or PPO plan.