Indemnity Insurance
a.k.a. Fee-for-Service Insurance
Indemnity insurance is a type of health insurance plan that is very flexible. Instead of being restricted to a specific network (like HMO or PPO), you can usually go to any doctor or hospital you want. Indemnity insurance is the “old-school” type of health insurance where you pay first, then get reimbursed. It gives you the most flexibility but usually at the highest cost.
Call Now
How it works:
-
You pay a monthly premium.
-
When you get medical care, you pay the doctor or hospital directly.
-
Then you submit a claim to your insurance company.
-
The insurance company reimburses you for a set portion of the bill (usually a percentage, like 70–80%).
Contact Us
Key Features
-
Freedom of choice – You can see any doctor or specialist without referrals.
-
Reimbursement model – The insurer pays you back after you’ve paid for services.
-
Higher costs – Premiums and out-of-pocket expenses are usually higher than HMO/PPO plans.
-
Less common today – Most people now have managed care plans (HMO, PPO, etc.), but indemnity plans still exist, often as supplemental or specialized coverage.
Pros and Cons
Advantages:
- Maximum freedom to choose doctors and hospitals.
- No need for referrals.
- Useful for people who travel a lot or live in areas with limited provider networks.
Disadvantages:
- Higher monthly premiums.
- You may have to pay upfront and wait for reimbursement.
- Less preventive care coverage compared to modern managed plans.
Let's Start Planning Your Protection
Maczko Insurance Solutions – your trusted ally for indemnity insurance
Schedule a free, no-obligation consultation with a local expert today. Together, we'll explore your risk landscape and craft a tailor-made indemnity solution built for resilience.
Contact Us