These are the things about Indemnity healthcare insurance.
Indemnity Plans and the Usual, Customary and Reasonable (UCR) Rate
UCR rates are the amounts that medical service providers in your area usually charge for services because indemnity plans are self-managed health insurance plans there is no network specifying the rates that your chosen providers will charge. As a result, you will want to familiarize yourself with the costs that your plan designates as UCR versus what your chosen provider will charge for services to avoid unexpected costs. In general most providers meet the criteria, however it is important to be informed when you use a self-managed plan like an indemnity health insurance plan.
Understanding Deductibles and Co-Payments for Indemnity Health Insurance
The deductible is the amount you are required to pay before policy benefits are provided. After the deductible, you may be required to pay a co-payment. A co-payment is a percentage you pay of the remaining charges after your deductible. For example: If your eligible charges are $800 and you have a $200 deductible, then that leaves $600 left. Say your co-payment is 20%. That means you are still required to pay 20% of the remaining amount of $600, which would be $120. Find out the deductible and co-insurance requirements of an indemnity health insurance plan to be sure you are able to cover the costs.
Indemnity Health Plans Do Not Restrict Access Based on Geographic Location
As explained in our definition of the indemnity health plan above, in an indemnity plan, you have the freedom to choose your doctor, specialist, or hospital with few, if any limitations. In some cases, HMO and PPO’s may limit your options for a doctor, specialist, or hospital by geographic restriction, or area in which the provider is located.10 This gives a significant advantage to the freedom offered by an indemnity plan for many people.
Indemnity Plans and Preventative Health Care Services
Some indemnity health insurance plans may not cover preventative services, while others do. Preventative health care services include yearly check-up exams and other routine office vi sits that are designed to prevent illnesses. Before selecting a health plan, be sure and discuss how preventative services are insured, and how much compensation you can expect. This will help you make the choice for the best possible plan. In some cases, costs of these services may not count towards your deductible.