Deductibles for Indemnity Health Insurance Plans?
Indemnity health insurance plans are a type of medical insurance Americans can choose to enroll in. Known as a fee-for-service policy, consumers will be responsible for paying for their own medical expenses up front, submitting a claim form to the indemnity health insurance provider and then getting reimbursed by them. Typically, the provider will review the claim and pay back only a portion of the amount of the submitted claim. Additionally, many indemnity health insurance plans require that aset deductible amount be met and that in general, the member pays a coinsurance percentage for all services rendered even after the deductible amount is met.
A deductible is the amount a policy holder is required to pay out of pocket towards a claim before the insurance policy benefits kick in. Benefit reimbursement under an indemnity health insurance plan will not begin until the annual deductible of the policyholder is met. The annual deductible amount for an indemnity health insurance plan is decided at the initial enrollment time of the indemnity health insurance plan.
Once the deductible for an indemnity health insurance plan is met, then the reimbursement checks can start rolling in and the health insurance company will pay the balance of expenses after the policyholder makes their coinsurance payment. Consider if you opt into an indemnity health insurance plan that has a $2,000 deductible amount and a 20% coinsurance payment. You will need to pay $2000 worth of medical expenses and expect nothing back in return. Then for every dollar over the $2,000 amount, the indemnity health insurance provider will pay 80 cents on every dollar while you will pay for 20 cents on every dollar equally in a 80%/20% split in fiduciary responsibility.
It is important to realize that not all medical expenses will qualify for indemnity health plan deductibles or reimbursement. Since you will be operating as a free agent choosing your own doctors and health strategies, if money is a concern, it is important to run recommended procedures through your indemnity health insurance provider to see if they will even consider paying the expenses or applying the cost to your deductible amount.
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