The number of options consumers have when choosing health insurance coverage is staggering, which can make the buying process a bit overwhelming. On the one hand, you can purchase coverage according to your situation, such as whether you’re self-employed, a student, a small business owner, etc. Alternatively, you can buy coverage by policy type, such as a PPO, HMO, or POS plan. With so many choices to make, you may not even know where to begin.

Indemnity Insurance

Before the advent of managed care, indemnity plans were the most popular form of health insurance coverage. You may also hear indemnity plans called traditional or fee-for-service (FFS) insurance. Though indemnity plans have the highest health insurance premiums, they also offer policyholders the most freedom to select their own providers and hospitals. With an indemnity plan, you visit any provider, hospital, or clinic you wish and pay the fee for service. You or your provider then submits a bill to your health insurer for reimbursement. You will not receive reimbursement for your medical expenses until you have met the deductible for your plan, however. Deductibles can range from $500 to $2,000 or more depending on your policy. To recap, the pros and cons of indemnity insurance include: Continue reading →