Indemnity Health Insurance

Is a indemnity health insurance plan is right for you?  Let’s take a look at some of the pros and cons:

Pros:

The indemnity health policy is different than policies offered by health maintenance organizations (HMOs) and preferred provider organizations (PPOs) because it allows you obtain medical care where you choose providing compensation for a set portion of the costs.

A key feature of the indemnity health insurance plan is that it does not force you to choose a primary care doctor.

Indemnity health insurance plans are also unique because they allow you to see a specialists and do not require you to obtain a referral in order to get compensated.

You are free to use as you feel needed for your own health care. This is significantly different than HMOs and PPOs which use managed care and may force you to choose a primary care provider as part of the plan.

Indemnity health insurance plans do not use a provider network.

Cons:

Waiting periods on coverage for some pre-existing conditions

A medical questionnaire may be required to be approved for coverage

Coverage is not mandated or standard, so plans vary greatly in covered services and costs with very little government oversight

 They are not meant to replace Major Medical insurance.