An indemnified insurance plan, often called a fee-for-service plan, is a type of health insurance
where you have the freedom to choose any doctor or hospital you want. The insurance
company then reimburses you for a portion of the covered medical expenses you incur.
Key characteristics:
- Flexibility: You're not restricted to a network of providers.
- Reimbursement:The insurer pays you back a set percentage of the cost after you
receive care.
- Deductibles and Coinsurance: You typically pay a deductible before coverage kicks in,
and then you share the remaining costs with the insurer through coinsurance.
- Higher Out-of-Pocket Costs: Compared to managed care plans like HMOs or PPOs,
you might have higher out-of-pocket costs because you're not using in-network providers.
Benefits:
- Provider Choice: You have complete control over which healthcare providers you see.
- No Referrals:You don't need referrals to see specialists.
Drawbacks:
- Higher Costs: Premiums and out-of-pocket costs tend to be higher.
- More Paperwork:You need to file claims for reimbursement.
- Less Predictability:You might not know the exact cost of care upfront.
Who it's for:
- People who value flexibility and choice in their healthcare providers.
- People who are willing to pay more for that freedom.
- People who don't mind handling the paperwork associated with claims.
Important Note:Indemnified plans are becoming less common as managed care plans gain
popularity.
