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What is an Indemnity Medical Plan, and is it the Right Option for Your Needs?

The benefits provided by an indemnity medical plan appeal to a wide range of people. Such plans give a patient the freedom to be treated by any doctor or hospital they choose, anywhere they are located.

These plans provide the flexibility that some consumers are truly looking for, as they allow a patient the opportunity to choose their own doctors and hospitals without having to worry about which provider network they may belong to.

With such a plan, patients are able to receive medical care whenever and wherever they choose. The insurer pays for much of the cost of medical services received by individuals covered under the plan.

How do indemnity medical plans pay for services?

The patients covered by indemnity medical plans are usually required to pay for medical services upfront, and then submit a claim form to the insurance company for reimbursement. The insurance company then pays what they consider "usual, customary and reasonable" charges.

This may sometimes be less than a provider is charging, but in the competitive field that is medicine today, many medical providers will be willing to accept this amount with no further charge to the patient.

A person covered under an indemnity medical plan should discuss this with a providers billing office in advance, to avoid surprise extra costs.

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