How am I Billed on an Indemnity Health Insurance Plan?

If “freedom of choice” is the belief system that motivates the decisions you make in life, then a indemnity health insurance plan may tickle your fancy. With an indemnity health insurance plan, also referred to as “traditional health insurance,” policyholders get the freedom of choosing their own doctors. They can go anywhere they please without having to go through a service network as there aren’t any involved with this type of policy.

Billing for an indemnity health insurance plan is similar to paying for a managed care provider. There are monthly payments for the premiums. This is important to realize and because of the freedom and flexibility associated with indemnity health insurance plans, the premium rates tend to be a bit more costly than other types of insurance.

When it comes to paying for actual appointments, procedures and additional services, indemnity health insurance plans handle their billing processes very differently than managed-care providers. When a policyholder with an indemnity health insurance plan seeks medical attention, they are responsible for paying out of pocket directly to the doctor issuing the service. The amount is not a co-payment amount, it is the full amount that the doctor will be billed in order to be paid for their services.The policyholder is not only responsible for paying the bill and expenses out of pocket, the indemnity health insurance policyholder must also complete their own paperwork in order to submit a claim. The claim form is then submitted to the indemnity health insurance plan provider and then they will review and reimburse the policyholder directly for a portion of their out of pocket costs.

If freedom is what you long for and you have the financial resources available to pay higher premiums and manage out-of-pocket expenses for the billing procedure associated with indemnity health insurance plans, then it may be an option worth considering. It is crucial that when you research health insurance policies for yourself, that you make sure to review what type of policy it is, what they will cover, the health insurance rates, and then crunch the numbers to figure out the additional costs that may be associated with the plan of your choosing.