How does coverage of traditional plans and HMO (Health Maintenance Organizations) differ?
Traditional major medical expense plans are classified as indemnity contracts. These plans indemnify, or reimburse, the insured for medical expenses incurred and may require the completion and filing of claim forms. These plans usually contain deductible and coinsurance cost sharing provisions and may restrict coverage for certain types of medical care. Indemnity plans, however, allow the insured the freedom to choose any primary care physician or specialist.
