What is Indemnity Insurance
There is a lot of jargon, or context-specific, language surrounding insurance. As a result, those who are in the field often use language without thinking that can require definitions for their clients. One of the terms that keeps popping up in the health and medical insurance industry lately is indemnity insurance. What is Indemnity Insurance?
How it Works
As a general rule, indemnity insurance is the most traditional form of insurance. Although it used to be a very common form of insurance, it is no longer common. Indemnity health insurance is fee-for-service insurance. This means that beneficiaries have a greater range of choice in their doctors, hospitals, and medical centers. They can choose to change doctors at any point, without referrals. The insurance policy pays their share of the cost of service after they receive a bill for that service.
Like other modern insurance plans, once the beneficiary meets their deductible, the insurance policy pays for their share of the cost of service. Typically, this is 80% of the service, as long as the service is “usual and customary.” If the service costs more than the “usual and customary” amount, then the beneficiary is responsible for the copay and the difference in costs. Indemnity insurance policies sometimes do not pay for preventative care, but will cover medical tests and prescriptions.
Because this is a fee-for-service plan, beneficiaries often have to file claims in order to receive their insurance policy’s share of the service as well as save receipts for prescription costs and other purchases.
How to Get an Indemnity Policy in Connecticut
Although they are not as common as they used to be, indemnity insurance policies are still available in Connecticut under some larger insurance carriers. Some of the most recognizable names that provide indemnity insurance health and medical policies are Aetna U.S. Healthcare, Guardian Life Insurance Company of America, New England Life Insurance Company, and United Healthcare Insurance Company.
Licensed agents – What is Indemnity Insurance?
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