Indemnity based Health Plans are a type of health insurance that provides the insured the freedom to avail medical facilities from any doctor or nursing home of his choice and get part of his expenses reimbursed.
Here the insured has the privilege of availing treatment from anywhere of his choice but he is limited by the amount of coverage and types of ailments covered. These types of plans are most common and provided by most of the insurer.
The other type of insurance plans are managed care plans where the insured can get himself treated only at specified nursing groups. When the insured needs to get himself treated, he has to first contact his insurer and they on his behalf arrange for the treatment in the nursing home, they have a tie-up with.
Suitability of each type of insurance
Indemnity based health plans provides the freedom to get oneself treated in any hospital but this freedom comes with additional costs and paperwork and there is a cap on the maximum reimbursable amount that one is eligible in a lifetime. But managed health plans proves cost effective in the long term.
Both have their own demand based on the flexibility and cost consideration of the persons feeling the need for themselves to be insured.
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This is a great option for those who don’t like the cashless hospitalisation plan, which operates on a network of doctors, nurses and other healthcare providers that are chosen on our behalf.
There are healthcare providers who we have a personal affinity to, that we trust, and would prefer to see routinely.
I did not know indemnity based insurance existed. It must be much more expensive than other types of insurance if you can chose where you go. However, it sounds like this is more for nursing homes. It would be interesting to know how it is different in emergency settings, travel, etc.
Health insurance of any type is a must for all individuals. Whether an individual chooses indemnity or managed is totally an individual’s choice. But the common factor affecting an individual’s choice are the budget, suitability of the plan and the type of service provided. Indemnity is best suited for those looking for quality and personal preference. Managed health insurance is economical while fulfilling its criteria.
As we like to say, the health is our biggest treasure and we need to act very prudently to obtain it. However, no matter, how much we try, nobody can not obtain 100% health through the entire life. In this cases, it is very helpful to visit medical facilities under your conditions. Great article.