What Is an Indemnity Insurance Plan?

Posted by:  :  Category: Medicare

A professional indemnity insurance policy transfers the liability of paying for damages or losses suffered or caused by the insured from the policy owner to the insurance company. If a professional indemnity insurance policy owner is sued, the insurance company will pay for his court fees. Insurers will also conduct their own investigation into the claims made against the policy owner. Claims and judgments won against the policy owner will be paid by the insurer up to the coverage limit.
Source: sapling.com

Humana Classic Indemnity Health Insurance Plan

Also known as a “traditional indemnity plan” or a “fee-for-service plan,” our Classic plan offers employees who want flexibility in the doctors they see. Our indemnity plan allows them to pay the same costs, regardless of doctor or hospital.
Source: humana.com

What is an indemnity plan, as it relates to health insurance?

Indemnity plans are the oldest and most liberal type of health insurance plan—the one your dad may have had when he wore the gray flannel suit to his job in the 1950s. Even up to the 1970s, most Americans still had indemnity plans (also called fee-for-service plans). Your parents (and their employer) paid a lot for this plan, but they may not have complained too much because (1) there was no other choice, and (2) the coverage was wide and largely unrestricted. They could see any doctor, anywhere, and get any medical service they wanted. After paying a deductible (today, it may be $500 to $2,000 annually) they would pay a portion (say, 20%) for every service they got, from a blood test to baby delivery. Today, about 1 in 10 Americans with employer-paid health insurance have some version of an indemnity plan. These policies are fairly expensive because the insurers don’t require members to use specific hospitals or doctors, so they often get no discount for services (insurers who limit their members to "in-network" hospitals and doctors can negotiate huge discounts with those providers because they’re guaranteeing them a steady supply of business). Indemnity plans can be the best choice for people who want ultimate freedom and are willing to pay the higher premiums and co-payments and don’t mind dealing with extra paperwork.
Source: sharecare.com

indemnity health plan definition

DEFINITION: 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.
Source: healthinsurance.org

Related posts:

  1. What Is an Indemnity Insurance Plan?
  2. What Is an Indemnity Insurance Plan?
  3. Humana Classic Indemnity Health Insurance Plan
  4. Indemnity Health Insurance Definition
  5. Understanding Indemnity Health Insurance Plans

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