Traditional major medical insurance that pays a percentage of the provider’s charges. Typically, indemnity plans pay providers on a fee-for-service or discounted fee-for-service basis. Many insurers, for example, will pay providers 80 percent of the usual, customary and reasonable charges for a comprehensive array of services. An indemnity plan that includes a network of providers is generally referred to as a Preferred Provider Organization About Indemnity Health Insurance.

Health insurance coverage can be categorized into 2 major categories :

• Indemnity Plans
  An indemnity plan reimburses you for your medical expenses, regardless of who provides the service. In some situations/types of coverage, this amount may be limited. The coverage offered by most insurers is in the form of an indemnity plan.


• Manage Care Plans
  Different plans use different methods for determining how much you will be reimbursed for your medical expenses. Below are some common methods of reimbursement :
  • Reimbursement - percentage of actual charges under this plan, the insurer pays a percentage of the actual charges for covered procedures and services, regardless of how much they cost. A common reimbursement percentage is 80%. This has the same effect as a 20% co-payment.