Indemnity health insurance is one of two main health plans in the United States, with managed care insurance being the other. This insurance policy allows the insured to control and have flexibility over their medical choices.

Indemnity Health Insurance

Known as the "traditional" health plan, indemnity health insurance is the oldest type of health policy in the United States. Indemnity insurance is a fee-for-service plan, which means that the insurer will pay only after medical services have been rendered.

Types

There are three options under indemnity health insurance. Two reimbursement plans will pay the insured for either the entire medical bill or a percentage, usually 80 percent. The third plan will have the insurer pay a specific amount to the insured per day for a maximum number of days.

Flexibility

The insured under an indemnity health plan does not have any restrictions when it comes to who provides their health care. They can see any physician of their choice regardless of location or cost.

Costs

Indemnity health insurance is more expensive than managed health care plans. In fact, some providers may require the insured to pay for the medical services upfront and have the insurance company reimburse the patient.

Warning

Some medical expenses may not be covered under an indemnity insurance plan, forcing the insured to pay out of pocket for the entire cost.

Source:

Health Insurance Finders: Individual Health Insurance

Bills.com: Indemnity Health Insurance

More Information:

Insurance Finder: About Indemnity Health Insurance