Definition - What does Indemnity Plan mean?
An indemnity insurance plans allow individuals to direct their own healthcare and visit almost any doctor or hospital they choose. A set portion of the total charges are then covered by the insurance company.
Indemnity plans are also known as "fee-for-service" plans.
Insuranceopedia explains Indemnity Plan
There are two types of indemnity insurance plans: professional indemnity
and indemnity health. Most indemnity insurance plans are voluntary, but some
businesses are required by law to provide such a policy for their
Indemnity health insurance reimburses the insured after they submit a claim for covered medical care. These plans pay out a specific amount per day for a maximum number of days. Some plans may also have a coinsurance amount that is covered by the insurer.
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