Indemnity Insurance Plan Information
Significance The purpose of an indemnity insurance plan is to allow individuals to choose their own health-care providers and to be reimbursed medical expenses no matter who they choose as a health-care provider. Limitations While indemnity insurance plans do reimburse for medical expenses, reimbursement amounts vary. While the doctors and hospitals you can utilize are not restricted, how much of the medical expense your insurance policy covers does have limitations. Reimbursement amounts may be limited under an indemnity plan, which means you may have some out-of-pocket expenses. Benefits While other types of insurance policies limit doctors and hospitals to providers on the health insurance carrier's list, an indemnity insurance plan does not have this type of a limitation. As opposed to a PPO, where you are responsible for a certain amount of your medical care depending on whether you see an "in-network" or "out-of-network" provider, and you have a deductible to meet, this is not the case with an indemnity plan. Whatever doctor you see, there is not a difference in cost to you. As opposed to an HMO plan, where you have to see a doctor or visit a hospital on the plan's list of carriers, an indemnity plan removes this factor completely. So, another primary benefit of this type of plan is that it is very flexible and reduces your out-of-pocket expenses. Actual Charges Under an indemnity insurance plan that pays actual charges, you will receive a reimbursement for the cost of your medical expenses. An actual charges indemnity insurance plan gives you back the cost no matter how much the expense is. Percentage of Actual Charges If an indemnity insurance plan offers reimbursement as a percentage of actual charges, then you will receive a set percentage of the actual medical expenses. Again, the reimbursement is regardless of how much the medical services cost. The most common percentage of actual charges reimbursement is 80 percent. For example, is a medical procedure costs $1,000, the indemnity insurance plan carrier will reimburse you $800 and you are responsible for the difference of 20 percent or $200. This percentage can vary by policy, so check with your insurance provider for specifics on what your percentage of reimbursement is. Indemnity Reimbursement With an indemnity reimbursement schedule, the insurance company pays a certain amount of the medical expenses per day and for a certain number of days. With an indemnity reimbursement schedule, the reimbursement amount is not determined by the cost of the medical care, but your reimbursement amount also cannot and will not exceed your expenses. About the Author Kristie Lorette is a freelance writer and marketing consultant that specializes in personal finance. She is also the editor of The Mortgage & Credit Diva, a blog devoted to mortgage and personal finance tips, tricks, and advice for consumers. You can read Kristie’s blog at www.mortgageandcreditdiva.blogspot.com or learn more about her writing and marketing services at www.studiokwriting.com. About Author Copywriter and marketing consultant, Kristie Lorette, is passionate about helping entrepreneurs and businesses create copy and marketing pieces that sizzle, motivate, and sell. It is through her over 14 years of experience working in various roles of marketing, financial services, real estate, and event planning, where Kristie developed her widespread expertise in advanced business and marketing strategies and communications. Kristie earned her BS in marketing and BS in multinational business from Florida State University, and her MBA from Nova Southeastern University. For more information, visit www.studiokwriting.com Disclaimer: Article submitters are solely responsible for the content of their articles. ArtiLib can't be held liable for the contents of the articles. Report Abuse | Browse By Category |
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