Understanding Indemnity Health Insurance
Americans love options regardless of what decision they are making. When buying a car many people waver between automatic and manualtransmissions. As the situations get more complex, the options follow, such as when choosing the right health insurance coverage. If you find yourself in the position of needing to choose some type of medical insurance for yourself, understanding indemnity health insurance is definitely an option you should consider.
Indemnity Health Provides Flexibility
Indemnity health insurance provides policyholders with more flexibility as far as selecting doctors, services or even in what state they choose to seek medical treatment and attention. For the luxury of having more freedom than many other types of health insurance plans, policyholders tend to adhere to a different set of guidelines such as:
- Having to pay higher premiums
- Needing to pay their medical costs out of pocket and wait for reimbursement from the insurance providers
- Are responsible for filing their own paperwork in order to make a claim on a medical expense
The complicated guidelines are directly related to the risks the insurance providers are taking in regards to indemnity health insurance. Indemnity health insurance operates without aprovider network. With a provider network, insurance companies have better control over the costs and types of medical care their policyholders can get. Because the amount of services rendered are more predictable in a managed care program, the insurance company is operating with a lower risk in place.
Higher Individual Health Premiums
However, with the flexibility that comes with indemnity health insurance, insurance companies are taking a greater risk with the expenses they may be billed for. Since policyholders can choose their medical providers at will and there are nopre-approved providers, the cost may be greater for the insurance provider. They try to offset the cost by charging the consumer more for the choice of indemnity health insurance.
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