What is an Indemnity Health Plans ?
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An indemnity plan is commonly
known as a fee for service or traditional plan. If you select an Indemnity
plan you have the freedom to visit any medical provider. You do not need
referrals or authorizations; however, some plans may require you to precertify
for certain procedures.Most indemnity plans require you to pay a deductible.
After you have paid your deductible, indemnity policies typically pay
a percentage of "usual and customary" charges for covered services; often
the insurance company pays 80% and you pay 20%. Most plans have an annual
out of pocket maximum and once you've reached this they will pay 100%
of all "usual and customary" charges for covered services.
Many health insurance companies
have moved away from indemnity plans and are instead offering managed
care plans such as HMOs and PPOs. You may have few or no indemnity plan
choices in your area.
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