Indemnity Insurance
Information about Indemnity Insurance
Indemnity health insurance plans, sometimes called fee for service insurance plans, are the most flexible insurance plans available. For this reason, indemnity insurance premiums are also somewhat higher than other forms of health insurance.
The functioning of an indemnity insurance plan is fairly easy to understand. There are no networks to deal with when using indemnity insurance. Simply choose any doctor or hospital for services and the indemnity insurance will provide coverage. Almost all indemnity insurance plans have a deductible. Indemnity deductibles can vary, but they are typically higher than deductibles for PPO plans. Once the amount of the indemnity deductible has been met, the indemnity insurance provides coverage for a percentage of fees. Typically, indemnity plans provide 80% coverage.
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Like most types of health insurance, indemnity insurance has an out of pocket maximum. Once the indemnity out of pocket maximum has been reached, the indemnity insurance pays 100% of medical fees.
Most indemnity insurance providers operate nationwide ensuring indemnity coverage in any location. However, some indemnity providers operate in specific regions and will only provide indemnity coverage within the region that they operate. For this reason, it is important to know the territory of an indemnity insurance provider before purchasing a plan.
Every state has different forms of regulation that apply to indemnity insurance and indemnity insurance providers. For example, California indemnity plans are required to provide coverage throughout the state. Not all indemnity laws are the same as those in California. Indemnity coverage and consumer rights with an indemnity insurance plan can be confusing because of the fact that many indemnity insurance providers work in such large regions. The California Department of Insurance warns that California indemnity insurance plans may be subject to the laws of another state if that state is the operational base for the indemnity insurance provider.
While indemnity insurance plans provide the greatest flexibility and choice of medical services, premiums and deductibles for indemnity insurance can be noticeably higher than other forms of insurance. If you decide that an indemnity insurance plan is the best option for you, the next step is to not only examine the plans, but the coverage areas of the indemnity insurance provider and whether you will be able to obtain indemnity coverage outside this region.
