The word indemnity can be defined as a protection against a damage or a loss. In relation to insurance, indemnity can usually be defined as a protection against the penalties brought about by one's actions. Indemnity health insuranceoffers compensation, completely or partially, for the financial burdens of illnesses.
While no one plan is best suited for everyone, indemnity plans can be structured to meet the particular needs of a person or group of people.
To help you better understand your options, here are short descriptions of each type of indemnity plan.
Basic Plans- plans that cost less, and provide less. You must do your own homework with these types of policies, because certain basic treatments ARE NOT covered. The rates of this type of coverage can differ greatly because the premiums are group rated and based on sex, age, occupation, location, and the current status of your health.
Indemnity Health Care Plans- This type of indemnity plan allows you to pick your own health care providers (some other plans require that you pick their network of doctors). You will more than likely have to pay a deductible and a percentage of your total bill. But there is an annual limit to how much you have to spend. If you reach this limit, your insurance provider will cover the rest of your bills for the year in full. These plans sometimes impose restrictions on coverage, which means you may need prior authorization before you receive hospital care or other high-cost services.
Flexible Spending Plans- These are employer based plans allowing an employee to create his or her own insurance package. An employee can usually choose between any number of employer benefits and cash. Since there are so many different employers offering so many different kinds of services, your best bet is to contact your human resources department for more coverage information.
HSA's- A Health Savings Account is a modern approach to health insurance. An HSA is a tax free savings account that covers YOUR expenses. Their are three advantages to this type of plan-you control the money, you don't have to rely on health insurers, and you decide where to put the money to make it grow. While this requires a more significant amount of cash, the benefits of the control you have are worth it. Generally, if you have an HSA, you will also be required to get an HDHP, or High Deductible Health Plan.
In conclusion, it's important to be aware of the options available to you. The brief descriptions given in this report undermine the complexity of each program. Furthermore, these descriptions only give limited insight into what plans are available to you, and what plans are best-suited for your particular situation.
0 comments: on "Health Insurance-Understanding Your Indemnity Plan..."
Post a Comment