Indemnity Health Insurance
What is a Medical Indemnity Plan?
Medical indemnity health insurance plans, also known as “fee-for-service plans, pay a fixed benefit amount when you receive health care services regardless of the actual amount of the actual bill. This amount could be more or less depending on the coverage you enroll in.
Medical indemnity plans can be purchased as a primary form of insurance, however, when combined with other insurance, they can help cover the cost of out-of-pocket expenses like co-pays and co-insurance.
Medical Indemnity Plans can Provide Cash to Reimburse You For:
- Hospital expenses – Daily room and board, miscellaneous expenses
- Surgical expenses – Cost of surgeon’s services
- Physician expenses – Office visits, non-surgical care while in the hospital
- Nurses’ expenses – Private duty nursing care
- Convalescent care expenses – Skilled nursing facility expenses.
Medical indemnity plans do not meet the requirements of the Affordable Care Act (Obamacare.) Therefore, you may be subject to tax penalties if this is the only health insurance you own (talk to a tax professional to find out more.) In addition, medical indemnity plans typically do not cover preexisting health conditions and my include per-incident, yearly, and/or lifetime benefit limits.