Health Insurance - Indemnity Plans

Why is it that many people hesitate to purchase indemnity health insurance plans? Well, one is because indemnity plans require policy holders to spend from their own pockets before they can file a claim. Another thing is that this type of policy pays less in terms of health care. You also need to accomplish a lot of paperwork before you can get the claim.

Despite the hesitations of many people, there are still those who purchase indemnity plans. Some health care professionals are not included in the network of managed plans but are included in indemnity plans. It's the decision of the individual whether he or she will choose an indemnity plan or not.

In an indemnity plan, there is no provider network. With a provider network, it only means that the insurance company has made arrangements with certain providers. Because of the arrangement, the insurance company can already calculate the possible medical expenses. Without the provider network, the policy holder can choose their own health provider. This puts the insurance company at a certain risk because they can't calculate the expenses or medical bills.

In order to protect the interest of the insurance companies, deductibles are charged. The deductibles need to be shouldered by the policy holder and when they finally reach the limit of the deductible, coverage will begin. In this case, the policy holder will need to file for claims to reimburse the money they've spent on their medical bills. Insurance companies can better manage the coverage and the claims. If the insurance company thinks that the charges given by some providers are unreasonable, they can refer to the UCR table.

To some consumers, indemnity plans are the best choice but others think otherwise. Policy holders are free to choose their health care professional and so they can receive care whenever they want.

Since individuals have different preferences, it is up to them to choose indemnity plans over managed plans. Before you finally decide to purchase indemnity plans, you should first conduct your very own research. Try to consider some factors like the cost of the plan, the amount of deductibles, the claim procedure, the coverage, etc. After carefully considering all the factors, you can now choose the appropriate plan or policy that can meet all your medical needs. With a good policy to back your financial needs, you have nothing to worry even if you or other members of the family get sick.