Health Insurance: Fee-For-Service (Indemnity)
Summary
Next »1/4
An "indemnity" health insurance plan is traditional health insurance that has been around for over 50 years. The name comes from the original purpose: the idea was to reimburse (or indemnify) people for the portion of medical bills that involves an unacceptable or unbearable loss. Underlying the concept behind this type of health insurance is that you, the insured, have the choice as to which health practitioners to see, when, and in what setting, as well as what drugs and treatments you would take.
Coverage is restricted to benefits described in the policy. Payment is limited to what is Usual, Customary and Reasonable in your area, subject to a deductible and co-insurance clause. What you pay each year is limited by a stop clause.
Part of maximizing use of a fee-for-service health insurance policy is staying on top of insurance company reimbursements.
If you are denied payment for the medical care you need, appeal.
