What is Indemnity Insurance?
Traditional major medical insurance pays a percentage of the provider's charges. Typically, indemnity plans pay providers on a fee-for-service or discounted fee-for-service basis. Many insurers, for example, will pay providers 80 percent of the usual, customary and reasonable charges for a comprehensive array of services. An indemnity plan that includes a network of providers is generally referred to as a Preferred Provider Organization.
Insurance that guarantees to meet the cost of a specified event on behalf of an insured person. Medical scheme cover indemnifies an individual against the costs of health care required. Non-indemnity health insurance, on the other hand, would simply pay a predetermined fixed amount of compensation on occurrence of a health event, regardless of the cost of treatment administered. Also a system of health insurance in which the insurer pays for the costs of covered services after care has been given, and that usually defines the maximum amounts that will be paid for covered services.
Some hospital indemnity policies will pay the specified daily amount even if you have other health insurance. Others may coordinate benefits, so that the money you receive does not equal more than 100 percent of the hospital bill. |
