Indemnity Health Insurance Plan – Explained in Detail

Indemnity Health Insurance Plan – Explained in Detail

Indemnity Health Insurance Plan – Explained in Detail:- Hey guys, today we have brought for you yet another interesting and mostly asked questions by people online in different forums which is “What is Indemnity Health Insurance Plan?”. Today we shall answer all your questions and clear all your doubts about Indemnity Insurance in a detailed Explanation in this post.

What is the Indemnity Health Insurance Plan? – Explained in Detail

A fixed indemnity health insurance plan is the one that pays a predetermined amount of money for any qualified medical services you receive. So let’s say, if your plan defines a $50 per day benefit for a check-up or an X-rays and somehow you manage to break your arm and have to get an X-ray, then you will be paid $50 from your plan.

Because the benefits are pre-set and are being paid out regardless of what the total bill for the qualified service might be, a fixed Indemnity Health Insurance Plan is sometimes called fixed-benefit health insurance plan or fee for service insurance.

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An Indemnity health insurance plan is a health care plan that provides you to choose your doctor, health care professional, clinic, even the hospital or service provider of your choice. Indemnity insurance gives you the greatest amount of flexibility and freedom in a health insurance plan.

Indemnity insurance plans or indemnity health insurance plans are also known as a “traditional indemnity plan” or a “fee-for-service plan”. These plans help you provide a total protection against all the payments of medical expenses.

Major Advantages of Indemnity Health Insurance Plans

  • A key feature of the indemnity health insurance plan or indemnity insurance plan is that it does not force you to choose a primary care doctor.
  • The indemnity insurance policy is different than plans offered by health maintenance organizations (HMOs) and preferred provider organizations (PPOs) because it allows you to obtain a medical care, which you choose and then the indemnity health policy grants compensation for a pre-set portion of the costs.
  • In addition to the above Advantages of Indemnity Insurance plans, indemnity health insurance plans are also unique because they allow you to self-refer to specialists, they do not require you to obtain a referral in order to get compensated if you choose to see a specialist.
  • Such kind of freedom available by an indemnity health insurance plan can be very valuable for managing your own health care policies and plans. This is significantly different than HMOs, IPAs, and PPOs which use guided care and may force you to choose a primary health care provider as part of the plan, which seems unfair. Indemnity insurance plans do not involve a provider network.

How are the Indemnity Insurance plan benefits being paid?

You must be familiar with your major medical insurance plan, which pays for all or a percentage of covered expenses after you meet certain deductibles, copays or out-of-pocket costs. And often, the payments the insurance company makes for you are made directly to health care providers. You see them later on in an explanation of benefits form.

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Indemnity insurance payment works differently. It pays you a certain predetermined amount for health care expenses specified in the plan. There are no deductibles to meet. You simply submit a claim for a qualified expense, and you are paid the amount the plan specifies for that service. The money is fixed and comes directly to you to use as you want.

What does a Hospital Indemnity Insurance mean?

Hospital Indemnity insurance, also called Hospitalization insurance or Hospital insurance, is a plan that pays you benefits when you are confined to a hospital, whether for planned or unplanned reasons or for other medical services, depending on the policy.

A Hospital Indemnity insurance plan can cover several medical expenses. Even if your health insurance covers a large portion of your hospital stay, you may still be needed to meet a deductible or pay a co-pay. Depending on your indemnity health insurance plan, your deductible could be anywhere around $1,500 or higher. This is the exact reason to why the high-deductible health plans aren’t always the best option. If you actually found your health insurance from the bottom of the barrel, you are hoping to be left with even higher hospital bills even after your health insurance policy pays their portion. In any of those situations, if that money isn’t immediately available to you, it could put you in a financial bind — fast.

Hospital Indemnity insurance pan can even help you with a “room and board.” If you need a private room and nurse, Hospital Indemnity insurance can help pay for all that as well. That takes care of your rent at the hospital, but what about the rent or mortgage on your house? Such expenses are on-going and anticipated, but hospital stays often have very unexpected living costs. Such medical costs can include extra living expenses too, like extra housing accommodations sometimes required due to your hospital stays. Usually, hospital stays often cost you extra by way of extra transportation costs, more money spent on food outside the home, and numerous others. That quickly adds up, topped off with the fact that you’re incapable to work and earn for yourself. Sometimes even that is probably covered too — some plans cover a loss of your earnings and income.

Important Updates:-

What is a Comprehensive Insurance Coverage?

What Is Structured Settlement Annuity?

What to Do Before Applying for a Mortgage?

When can I make an Indemnity Health Insurance claim?

As soon as you receive a receipt for a qualified expense. Simply submit that receipt along with a completed claim form, and you will be paid the preset amount for that qualified expense.

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Is An Indemnity Health Insurance Plan Right for You and Your Family?

Indemnity health insurance plans have the most advantages when compared with other health insurance policies. The following points should be remembered before you finalize any Indemnity Health insurance plan for you and your family:-

  • You do not have or want to get bound to a particular primary care doctor. Unlike HMO and PPO’s the indemnity health insurance plan does not force you to select your primary care doctor, therefore this freedom of choice becomes an advantage in having an indemnity insurance plan.
  • You do not mind paying a little more for your health insurance costs or deductible
  • You are not worried about selecting any providers, who are not vetted for medical expenses. This means that because you are not part of any network in an indemnity health insurance plan, the costs of the doctors and specialists you choose may stretch beyond the expense outline of the UCR. You will have to pay close attention to how your decisions will affect your medical costs.
  • You live in a geographic region where access to the doctors and medical services is not easy, your demands would not be included in an HMO or PPO plan.

How to Know What is Covered in An Indemnity Health Insurance Plan?

Your indemnity insurance plan or policy booklet or your employee benefits booklet will have listed out all the terms and conditions of what is covered and what is not covered in your indemnity health insurance plan. Read out your indemnity health insurance policy papers or benefit booklet before you need health care services and ask your health insurance agent, insurance company or employer to explain anything that is unclear.

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