Understanding the Benefits of Indemnity Insurance
If you’re like most Americans, healthcare insurance creates more stress than security for you. There are so many insurance choices out there, from HMO insurance to PPO insurance to indemnity insurance.
And then there are the pros and cons of each plan option. Do you want to pay a $1,000 deductible with a 40% copay, or would you rather pay a $1,500 deductible with a 20% copay? The sheer variety of choices makes even checking on plans a daunting, intimidating task.
Then, even after you have selected and paid for a plan, most of the time you don’t know exactly how much you have to pay. For example, your insurance plan may cover lab work but not x-rays.
To make matters all the more frustrating, doctors often don’t know themselves how much you’ll have to pay. And finding out can take months and months. Then, at the end of those months and months, you get a bill from your insurance company.
And surprise, the amount is much larger than you anticipated. Today, we’re discussing the ins and outs of indemnity insurance, and how it can simplify these complications and ease your frustration.
What Is Indemnity Insurance?
One of the most flexible insurance options on the market is indemnity insurance.
While this kind of insurance requires you to go through the same kind of motions as the others, it features some great benefits the others lack.
A Wide Range of Doctors to Choose From
Perhaps indemnity insurance’s most attractive feature is having access to numerous doctors.
Overall, insurance plans work like a subscription service. Doctors who are part of that service agree to work with it and honor the rates promised to you. Thus the idea is when you subscribe to that plan, you are guaranteed access to cheaper rates at those doctors’ offices.
Unfortunately, this has a major downside. The nearest in-network doctor could be an hour away, or he could be a poor healthcare provider. Either leaves you stranded without adequate care in the event you become ill.
With indemnity insurance, you won’t have to worry about this scenario unfolding because most doctors accept it. So when you have this kind of insurance, you have the biggest possible network of doctors to choose from.
Choosing Your Main Healthcare Provider
Another very attractive feature of indemnity insurance is not having to choose a single main healthcare provider.
Most insurance providers require you to choose one main healthcare provider and to stick with him or her. This requirement may not bother some people, but it can prove a major discomfort for others.
For example, let’s say you’re a woman who has a male main healthcare provider. You go to him when you have the flu, a sprained ankle, and other easily resolved issues.
Now let’s say the only female doctors are out-of-network or don’t practice with your doctor. That means you’ll almost definitely have to see your male doctor for your PAP smears, pelvic exams, and other reproductive health needs. This makes you uncomfortable because while he is a great doctor, you’d much prefer seeing a female doctor for those needs.
Through an indemnity healthcare plan, you won’t ever have to worry about finding yourself in this scenario. You can have multiple healthcare providers without penalty.
Going to Specialists
Many healthcare plans require that you go see your main doctor and get a referral prior to seeing a specialist. In some cases, this requirement makes sense, such when determining whether or not you’ll need surgery for a certain ailment.
But in other cases, it only results in more bills and a longer time suffering for you.
Take, for example, seeing a dermatologist. Getting in to see a dermatologist can take several months, depending how far out he or she is booked. Adding seeing your main healthcare provider to the mix means you have to wait even longer.
This may not be a huge issue if you have acne and want a prescription for medicated lotions and washes.
But what if you have a strange spot on your arm that wasn’t there before? A dark mark that resembles the photos of skin cancer you sometimes see in medical journals? That’s an issue that you’ll want to address right away without dealing with insurance plan red tape.
You can do just that with indemnity insurance. It allows you to bypass your main healthcare provider and go straight to a specialist if you need to. Less red tape means less time you spend waiting for a diagnosis that could save your life.
Going Out of the Area
One major drawback of other insurance companies is that they limit the area in which you can use your insurance.
This might not sound like a huge deal since you generally go to doctors in your area anyway. But consider what would happen if you had cancer or some other DNA-related ailment.
Many times local facilities lack the equipment for dealing with certain types or advanced stages of cancer. In those cases, the patients are referred to other facilities, which are sometimes out of the area or even out of the state.
Because indemnity insurance gives you more choices, you can go to doctors go out of the area and still use your insurance.
Getting Cash Back
Other healthcare plans require you to wait while they process your treatments and then send you a bill.
Indemnity insurance works differently. It pays you cash back for services you undergo that are covered by your plan.
For example, let’s say you have to have some x-rays taken. The total cost is $100. Your indemnity plan says you get $100 back on all x-ray costs, so you’ll get that $100 back as soon as it is processed.
Need More Information? Contact Us!
At the Proactive Broker Network, we want you to have the best coverage possible. If you have additional questions about indemnity healthcare insurance, please feel free to reach out to us directly.
Do you know of any other benefits of this kind of healthcare insurance? Tell us in the comments below!