What Does an Indemnity Plan Cover?

An indemnity plan is a common type of health insurance coverage. Benefits of this plan include its flexibility and the ability to choose your own physician and hospital rather than being limited to providers within the plan. With an indemnity plan, policyholders are free to receive their health care services wherever and whenever they choose. This policy is attractive to individuals who travel often and may need coverage away from home, as well as individuals suffering from a serious chronic medical condition. An indemnity plan is one of the most expensive medical health insurance options, which usually means a higher premium and more paperwork for you. There are three kinds of indemnity plans individuals may choose.

Common Coverages

• Indemnity plans typically pay for visits to your doctor and hospital stays, as well as medical tests and prescriptions. Check-ups, pelvic exams, immunizations and other preventive care services may not be covered.

Basic Health Insurance

• One indemnity plan option is basic health insurance. This policy covers the cost of hospital room and care and some hospital services, including X-rays and prescribed medication. This coverage also pays for some doctor visits and surgery costs.

Major Medical Insurance

• Major Indemnity insurance covers the costs of expensive illnesses or injuries, as well as the cost of long-term treatment. In-patient and out-patient expenses are also covered under this policy.

Comprehensive Insurance

• Comprehensive Indemnity insurance policies combine both basic and major medical coverage in one plan. The cost of this policy varies depending on the level of coverage desired. Individuals interested in this type of insurance policy should check with their insurer to confirm they have both basic and major medical protection coverage.