The word indemnity can be defined as a protection against a damage or a loss. In relation to insurance, indemnity can generally be defined as a protection against the penalties brought about by one’s actions. Indemnity health care insurance provides compensation, completely or partially, for the financial burdens of illnesses.
While no one plan is best suited for everyone, indemnity programs can be structured to meet the particular needs of a person or group of people.
To help you better understand your options, here are short descriptions of each type of indemnity policy.
Basic Plans- programs that cost less, and provide less. You must do your own homework with these types of policies, because certain basic treatments ARE NOT covered. The rates of this type of coverage can differ greatly because the premiums are group rated and based on sex, age, occupation, location, and the current status of your health.
Indemnity Health Care Polcies- This type of indemnity policy allows you to pick your own health care providers (some other programs require that you pick their network of medical providers). You’ll more than likely have to pay a deductible and a percentage of your total bill. But there’s an annual limit to how much you have to spend. If you reach this limit, your insurance provider will cover the rest of your bills for the year in full. These programs sometimes impose restrictions on coverage, which means you may need prior authorization before you receive hospital care or other high-cost services.
Flexible Spending Plans- These are employer based programs allowing an employee to create his or her own insurance package. An employee can generally pick between any number of employer benefits and cash. Since there are so a lot of different companies offering so a lot of different types of services, your best bet is to contact your human resources department for more coverage information.
HSA’s- A Health Savings Account is a modern approach to health care insurance. An HSA is a tax free savings account that covers YOUR expenses. Their are three advantages to this type of plan-you control the money, you don’t have to rely on health insurers, and you determinewhere to put the money to make it grow. While this requires a more significant amount of cash, the benefits of the control you have are worth it. Generally, if you have an HSA, you’ll also be necessary to get an HDHP, or High Deductible Health Plan.
In conclusion, it is critical to be aware of the options available to you. The brief descriptions given in this report undermine the complexity of each program. Furthermore, these descriptions only give limited insight into what programs are available to you, and what programs are best-suited for your particular situation.
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