Indemnity health insurance plans are also called “fee-for-service.” These are the types of plans that primarily existed before the rise of HMOs, IPAs, and PPOs. With indemnity plans, the limitation exists in the amount of the reimbursement that an insured party can receive to cover medical expenses. The medical expense reimbursement amount can range from a per day cost and set percentage to the actual costs of the medical expenses. Indemnity health plans offer individuals the freedom to choose their health care professionals.
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