Also called fee-for-service, these were the only plans prior to the advent of managed care. With indemnity plans, members pay a pre-determined percentage of the cost of healthcare services, and the insurance carrier pays the rest ( e.g., 20/80), after a deductible is met. The fees for services are defined by the providers and vary from one to the next. Members can choose their healthcare providers without restrictions.
Similar to a fee-for-service plan in which the insurer pays for all or part of covered services that the patient chooses to purchase from health care providers.
Individuals pay the Deductible plus a pre-determined percentage of the cost of healthcare services, and the health plan pays the remaining portion; fees for services are defined by the providers and vary from physician to physician.
known as fee for service health insurance programs, indemnity programs were very popular before the establishment of HMO, IPA, and PPO plans. With indemnity plans, the health insurance consumer pays a set percentage of the total costs of the health care treatment, and the health insurance company pays the remaining percentage. The costs of medical treatment are defined by the health insurance provider and vary by doctor. Indemnity health plans allow health insurance consumers an opportunity to become actively involved in selecting the actual medical care professional or physicians.
Indemnity health insurance plans are also called "fee-for-service." These are the types of plans that primarily existed before the rise of HMOs, IPAs, and PPOs. With indemnity plans, the individual pays a pre-determined percentage of the cost of health care services, and the insurance company (or self-insured employer) pays the other percentage. For example, an individual might pay 20 percent for services and the insurance company pays 80 percent. The fees for services are defined by the providers and vary from physician to physician. Indemnity health plans offer individuals the freedom to choose their health care professionals.
A traditional fee-for-service plan.
Indemnity health insurance plans are also called "fee-for-service." These are the types of plans that primarily existed before the rise of HMOs, IPAs and PPOs. With indemnity plans, the individual pays a predetermined percentage of the cost of health care services, and the insurance company pays the additional percentage ultimately adding up to 100% of charges. For example, an individual might pay 20% for services and the insurance company pays 80%. The fees for services are defined by the providers and vary from physician to physician. Indemnity health plans offer individuals the freedom to choose any physician or hospital.