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Glossary of Health Insurance Terms To Know

Fee-For-Service (Indemnity)

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A Fee-For-Service (also known as "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 the insured has the choice about which health care professionals to see, when to see them, and in what setting, as well as what drugs and treatments to take.

To learn about  fee-for-service policies, click here

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