Traditional health insurance plans are often called indemnity health insurance plans. These plans can be expensive, but they often cover the most health problems that may occur. Other insurance plans can exclude some illnesses or diseases from coverage. There are disadvantages to indemnity plans, however, such as they do not usually cover preventative health care like physicals. And these health plans often cover only a percentage of your bill, resulting in a co-pay. You should research the advantages and disadvantages of various coverage options when you are considering health insurance for you and your family.
While the disadvantages may seem problematic, there are many advantages to indemnity health insurance plans. You may have a higher monthly premium and you may need to pay upfront costs and submit claims paperwork, but your deductible will be more manageable and your coverage will be wider. Some health insurance plans will not cover certain medical expenses or care, but indemnity plans often do.
Indemnity health insurance plans allow subscribers the freedom to choose their own physicians. Other insurance programs restrict members to a list of doctors and hospitals which they consider their preferred providers. With indemnity health insurance, whatever doctor or hospital your physician chooses to send you to will be covered by your insurance. There have been many instances of unsatisfied customers who have chosen a doctor for themselves or a pediatrician for their children only to learn later that the person they chose is not a preferred provider. This means they either pay their own bills, or they find another provider which is approved by the insurance company.
While preferred provider organizations (PPOs) or point-of-service (POS) plans limit the physician you can see to a list of network physicians and hospitals, the freedom of choosing any physician is nationwide with indemnity health insurance plans. This means that if you are traveling across the country and have an accident or a medical emergency, you can go to the nearest hospital or see the closest physician without worrying about the expense. There have been instances where hospitals or physicians will either refuse to treat patients or treat them only minimally because the hospital or physician is not inside the plan's preferred provider network - meaning that the patient's health insurance will only cover a small part of the expense and the patient is liable to pay the rest of the bill. This is a risky financial situation for the physician and/or hospital since patients are often unable to fully pay costly medical bills. With indemnity health insurance plans, this is almost never the case. Consider this and the other benefits of indemnity health insurance when choosing the plan that is right for you. Overall, indemnity health insurance plans also offer you the best emergency medical coverage in the industry.
Those persons who are considering the purchase of indemnity health insurance will find it beneficial if they use the internet to find those companies which offer instant health insurance quotes for this product. The companies which provide this online service usually request a few relevant details about your health and physical condition so that they can generate a quote. After the information is input, representatives of these companies will offer quotes for several insurance plans. Then, the prospective buyer can compare both the level of coverage and the price of each premium to determine which plan offers the best value for the necessary level of coverage.
Indemnity Plan Health Insurance
This is one problem which has now been recognized by the insurance companies and today there is an alternative in the form of a Preferred Provider Organization (PPO) plan which goes some way towards merging the two and providing the benefits of both.
The choice up until now has been between an indemnity plan which essentially provides cover for accidents and unexpected illness, and which also gives the policyholder considerable freedom in choosing where and when treatment is taken, and managed care which focuses on providing everyday medical care, but restricts the policyholder to seeking care within an approved network of healthcare facilities.
In essence the new PPO is a managed care plan and provides relatively low cost care in exchange for policyholders seeking care from within the insurance company's approved network of providers. However, a PPO also allows policyholders to seek treatment outside of the approved network if they wish to do so, within certain limits.
Unlike a traditional managed care plan, the PPO does not assign a patient to a primary care physician through whom all treatment must be taken and from whom a referral is required for specialist care. This means that the policyholder is free to consult any doctor within the network and can also seek treatment from a specialist outside the network if he or she chooses to do so.
There is a course a price to be paid for the ability to seek treatment outside of the insurance company's network and policyholders will normally need to pay a proportion of their costs when such treatment is taken.
This meets the needs of many people who want the freedom of choice offered by indemnity insurance and also meets the needs of those people who are looking for a low cost plan to cover their routine day-to-day medical needs.
Both Dan Wright & Health Insurance are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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