Indemnity Health Insurance - Can Indemnity Health Insurance be your solution to affordable health coverage?

Indemnity health insurance, also called Mini Medical Plans, are fee-for-service health plans. They are popular for those individuals who cannot qualify or afford traditional major medical coverage, or for those who need to supplement their existing coverage.

Indemnity plans are designed to allow patients maximum flexibility and choice when it comes to their providers. With an indemnity health insurance plan, you can choose which doctor and hospital you visit without worrying about in-network or out-of-network providers.

Is an Indemnity Health Insurance Plan Right for Me?

If you are looking for an extremely flexible plan that will allow you to choose any provider that you want, then an indemnity health plan may be for you.

Payment for services with this type of plan depends on your provider. Some expect you to pay at the time of service; some require you to pay a percentage up front and will bill your insurer for the balance.

In Review: What does "indemnity" mean

When insurance professionals speak about indemnity insurance, the thing that's being indemnified is "you, the policyholder." An indemnity insurance contract states that the insurance company will pay your medical bills. In some cases, it will reimburse the insured person for bills paid out-of-pocket. In other cases, it will pay bills directly to the doctor or hospital providing services. In either case, it pays fees for medical services after they are provided. This structure puts most of the decisions about health care and treatment on the shoulders of the policy holders, who usually defer to the suggestions that their doctors make.

Indemnity health insurance comes in several variations which are based on specific coverage limitations. The most common variation in indemnity health coverage is the major medical policy.

Types of Health Plans