Definitions for "Indemnity Health Plan"
Keywords:  ipa, ppo, hmo, healthcare, freedom
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.