Indemnity Health Insurance

Introduction to Indemnity Health Insurance

Health insurance is divided into two types. Tradition health insurance, and what is now come to be called "Managed Healthcare." There is a subtle but important difference between the two. In managed health care, there is a network of providers who participate with the insurance company. Or when it's an HMO , if you need a doctor, you can choose a Primary Care Physician (PCP) who will refer you to other providers. Traditional or Indemnity Health Insurance does not require you to choose from any set of physicians and will allow you the freedom to choose one whom you are comfortable with.

Problems with Managed Healthcare

There are numerous benefits to a managed health plan such as lower costs. Even the insurance company benefits from the lower risk as it knows who the doctors are and how much they charge. However, for several reasons, this isn't a viable option for some people. For example, if you're a frequent traveler, you may end up in an emergency situation where there are no approved providers in the vicinity. Even worse, if you're out of the country, you could have problems with or without travel health insurance.

Yet others are dissatisfied with the choices provided to them and have certain favorite doctors whom they trust to be able to serve them better than others. These doctors may not participate in the managed insurance plans.

For such people, an alternative is needed. Indemnity health insurance offers them a way out - enabling them to have insurance cover, and still choose providers they trust.

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Benefits of Indemnity Health Insurance

Apart from the reasons mentioned above, Indemnity health insurance can sometimes be the only available option for health insurance. Managed health care is usually provided as a group insurance such as that provided by an employer. If you need insurance as an individual, or your small firm doesn't have enough employees to qualify for regular group insurance, indemnity health insurance might be your only choice.

Disadvantages of Indemnity Health Insurance

Due to the benefits afforded by Indemnity health insurance, it's usually more expensive. The premiums are slightly higher, and depending on the plan, the out of pocket costs are higher as well. Co pay starts after a certain deductible has been met and the maximum deductibles are very high.

Also, Indemnity health insurance generally doesn't cover preventive check ups. As you can see, there are several things to consider when choosing this sort of plan.

The final decision whether or not to take up an Indemnity Health Insurance Plan can be made only after a thorough comparison of all the available options. You can use this site to make that choice by comparing the features and prices of various plans and reach an informed conclusion.