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A Focus on Indemnity Plan Health Insurance
Health insurance comes in two basic forms – indemnity plans and managed care plans. Both indemnity and managed care health insurance are further broken down into several different types of health insurance so it is important to take the time and compare health insurance plans to determine what best fits your health care needs. Each type of health insurance offers different benefits, costs and control you personally have over your medical services
Types of indemnity plan health insurance
Unlike managed health care plans, indemnity health plans put you in charge of choosing your health care providers, such as particular doctors and hospitals. You pay a monthly premium and your health insurance pays your medical care expenses, often after you pay a deductible and possibly a percentage of the bill.
A common employer-sponsored form of health insurance is a cafeteria or flexible spending plan. This type of health insurance allows employees to create a benefit package taken from a number of options. Contact the employee benefit department at your company for more information on the exact mix of choices available to you.
If you are looking for lower cost health insurance, a “basic and essential” plan may be the best option. Do keep in mind this type of health insurance is limited in what services may be covered so it is important to carefully read the policy so you understand what treatments the plan does cover. Health insurance policies known as catastrophic health insurance or high-deductible health plans do just what it sounds like they would. The deductible is high, but this type of health insurance protects you against high total cost catastrophic illness.
Health savings accounts are fairly new and an alternative to traditional health insurance. This plan involves putting money into a tax-free savings account to cover your medical expenses.
Did you know? Employer-based health insurance can be an indemnity or managed care plan depending on the specific benefits offered by your company.
Takeaways:
- Indemnity health care plans let you choose your health care providers
- Employer-based indemnity health care is often a cafeteria or flexible spending plan
- Basic and essential health care plans are low cost, but cover very limited medical services
An independent online resource is the fastest and easiest way to have health insurance providers compete for your business. Click here if you are ready to start comparing health insurance quotes from multiple providers.