{"id":3199,"date":"2020-02-14T07:20:00","date_gmt":"2020-02-14T07:20:00","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=3199"},"modified":"2023-03-21T20:56:11","modified_gmt":"2023-03-21T20:56:11","slug":"what-is-an-indemnity-plan","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/health-insurance\/understanding-health-insurance\/what-is-an-indemnity-plan\/","title":{"rendered":"What Is an Indemnity Plan?"},"content":{"rendered":"\n
If you know anything about health insurance<\/a>, you\u2019ve probably heard of an indemnity plan. If not, that\u2019s okay, we\u2019ll explain it. An indemnity plan is the type of health insurance most people had before PPOs, HMOs, and other in-network plans became popular. With a fixed indemnity plan, your insurance provider pays a predetermined percentage of charges considered \u201ccustomary and reasonable.\u201d<\/p>\n\n\n\n The biggest difference between a doctor or hospital indemnity plan and a PPO or HMO is that the provider doesn\u2019t have a contract with the insurance company. Therefore, the health care professional or chosen facility would be \u201cout of network.\u201d Also, since this plan covers a set benefits based on a specific medical expense, you\u2019d ultimately share the total covered cost, minus the deductible<\/a>.<\/p>\n\n\n\n As with any insurance, a fixed indemnity plan has both advantages and disadvantages. The primary benefit is you select the doctor and hospital. Some people have seen one particular doctor for years, so they don\u2019t want to make any changes. The same holds true for hospitals as individuals sometimes have a specific preference where they go.<\/p>\n\n\n\n You can also choose a specialist rather than having to go with one in-network. For people who need special care, the only way they can get the necessary treatment is by first seeing a doctor, which adds to the overall health care cost. With a fixed benefit plan, you don\u2019t need a referral from a primary physician.<\/p>\n\n\n\n Simply put, when looking at a fixed indemnity plan vs. major medical, you have a lot more freedom. With so many restrictions when it comes to health insurance, that alone makes an indemnity plan worthwhile for a lot of people.<\/p>\n\n\n\nHow Does an Indemnity Plan Work?<\/h2>\n\n\n\n
Fixed Indemnity Health Insurance Pros and Cons<\/h2>\n\n\n\n