Indemnity Health Insurance

By: EconomyWatch Content   Date: 24 February 2010

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Indemnity health insurance or the fee-for-service plan offers you with the flexibility of choosing the doctors and medical facilities. These plan offer coverage for the services that are eligible as per the policies. Indemnity health insurance plans usually cost more than HMOs and PPOs. However, the flexibility in terms of choices balances everything.

Indemnity health insurance is not the ideal insurance for everyone. One with limited funds may struggle with the huge cost of medical care, which has been following an upward trend for long.

Points to Consider: Indemnity Health Insurance

Buying indemnity health insurance policy has more than what meets the eye. On the outset, the plan may look very cost effective. However, the fact remains that there are various components that can surprise you at the time of actual coverage.

The following points will come in handy while buying an indemnity health insurance:

·        Deductibles: This is the amount of money that one needs to pay before the insurer offers the coverage. This amount is pretty high for the fee-for-service plan.

·        Co payments: Once the deductibles are paid, many insurers may ask you to co-pay a certain amount towards the total bill. For example, if the total bill is $500 and after deductibles it remains to be $400, the insurer can still ask for a co payment of $20 towards the left over bill.

·        No preventive care: A few indemnity health insurance plans may not offer preventative services. With preventive care coverage, one can go for regular check ups and be covered for them. However, with indemnity insurance, this factor is missing. This also means that the overall cost of healthcare increases.

Therefore, while picking an indemnity health insurance keep your eye on policy booklet that is issued along with the package. It spells out all the terms and condition clearly.

Unlike HMO and PPO, the amount of coverage is not as big and extensive as before. So, this results in more payments from your pocket. Also, a personal care physicist is missing, which means that one becomes vulnerable to unnecessary expenses.

Indemnity health insurance may, nevertheless, be the best option for people in their prime and particularly so, if they have tighter budgets.


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