Indemnity Health Insurance
Indemnity or fee-for-service health insurance plans used to be the norm in the United States, but in recent times, managed care plans have become more prevalent. But, what exactly is an indemnity health insurance plan?
Indemnity plans generally have these features:
- A deductible amount
- Reimbursement for 80 percent of medical expenses
- A large choice of medical doctors and facilities to choose from
Fee-for-service plans like these give you the greatest flexibility in choosing where you will receive care and by whom. However, your copayment will vary from service to service since you will be responsible for 20 percent of the medical expense. Most indemnity plans have a set rate they pay for each service. This is based on rates for a specific medical service in your area. If the health insurance company sets the rate for an emergency room visit at $100, they will pay $80 or 80 percent. If your actual visit costs more than that, you will be responsible for paying not only your 20 percent, but any remaining balance. Indemnity plans do not usually pay for preventive care such as screenings, flu shots or even birth control, but this varies from policy to policy.
To get quotes on indemnity health insurance or other types of health plans, use the InsuranceBureau form. You will be able to obtain multiple quotes from health insurance companies in your state.
Sources
- The basic flavors. Retrieved May 5, 2008, from http://money.cnn.com/magazines/moneymag/money101/lesson16/index2.htm
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