Indemnity health insurance may be the most preferred type of health insurance. The insurance generally allows the insured to visit a doctor of his/her choice, which may not be possible in managed care. The indemnity health insurance generally may quote high costs and service upfront. This type of insurance is also called as fee-for-service plan. The insurance plan generally involves sending the bill to the insurance company, which may pay a part of the bill. The plan might have you paying some amount of money for some period of time, which may then be reimbursed to you in case of emergency. The managed care plans sometimes may not cover all the health problems, some illnesses can be excluded from coverage. But, in an indemnity health insurance all types of health problems may be covered. The indemnity plans usually agree to reimburse only some percentage of the bill, which may be a major drawback of the plan.
The indemnity health insurance plan’s major advantage is that it allows the insured to choose his/her doctor. The other insurance companies usually have a list of doctors and hospitals as preferred providers to reimburse the money. This has the major drawback that, if the insured makes his/her own choice for physician, he/she may have to take responsibility for the charges that goes beyond the plan’s limit. The indemnity health insurance usually may have the charges made by the insured. The bills are then sent to the company and the money can be claimed. This plan may help the insurer from having to make unnecessary charges. For those people who might want to choose their doctor, indemnity health insurance plans may be best.
Apart from indemnity health insurance, there are few other types of health insurance plans. Basically, taking a health insurance involves the policy taken acting as a contract between the insurance company and the individual or sometimes the employer. The insurance company usually may provide the contract, all the type and amount of costs that may be covered by the policy. The contract may be renewed monthly or yearly. Many insurance companies have a list of providers, usually termed as In-Network Provider. The health care providers preselected by the company may have agreed to charge rates that may be lower than the providers not in the list. The company may also provide additional benefits to the individual, seeking help from in-network providers. It may usually cost less for a patient seeking help from in-network providers.
The health insurance programs may be provided by government sponsored social insurance companies or by private insurance companies. The insurance policies can be taken for a group or for an individual. Usually, some employers provide their employees with insurance policies, taken from the company after an agreement. The employer or the individual taking the policy may have to pay a fee or premium, which may be reimbursed by the insurer in case of emergencies. Health insurance plans can be of many types. Generally, health plans offered may be categorized as health maintenance organization plan, point of service plans, preferred provider organization plans and fee-for-service plans.
The Health Maintenance Organization plan may demand the individual to make payments in advance which may be reimbursed when needed. The plan may offer the individual with a list of providers to choose from. These plans may demand co-payments for office visits or hospital stay. Point Of Service plans may allow you to make the choice of health care. You may seek the help of any provider from the in-network list and receive coverage or may choose a provider out of the list and then claim for reimbursement. The Preferred Provider Organization plan may offer lower overall costs for all in-network provider arrangements. The list may include the doctors, hospitals and other health support providers. When chosen from the network, the plan may offer a lower overall cost for the individual. But, the plan also allows out of the network treatment, if desired by the individual. The Fee-for-Service or indemnity health plans are usually considered the traditional plans. The company may reimburse the insured for every service received. The plan usually demands the individual to make annual payments before it starts the reimbursement. It also offers the individual the freedom to choose the health care provider.