How does an Indemnity plan work?
A traditional Indemnity plan offers a great deal of freedom in choosing which doctors and hospitals to use, but will probably involve higher out-of-pocket costs and more paperwork. Under an Indemnity plan, you may see whatever doctors or specialists you like, with no referrals required. Though you may choose to get the majority of your basic care from a single doctor, your insurance company will not require you to choose a primary care physician. However, this kind of freedom will cost you. You’ll likely be required to pay an annual deductible before the insurance company begins to pay on your claims. Once your deductible has been met, the insurance company will typically pay your claims at a set percentage of the “usual, customary and reasonable (UCR) rate” for the service. The UCR rate is the amount that healthcare providers in your area typically charge for any given service. An Indemnity plan may also require that you pay up front for services and then submit a claim to the insuran
Related Questions
- Is the provider payment from Medicare different under the Aetna Medicare Open Plan than the Traditional Choice Indemnity Plan? Are providers bound by the same rules and regulations?
- What is the difference between an HMO and a PPO insurance plan? What if my plan is an "indemnity" insurance plan?
- Can I stay in the Traditional Choice Indemnity Plan instead of moving to the Aetna Medicare Open Plan?
