What is indemnity insurance or fee-for-service coverage?
This type of coverage generally assumes that the medical provider (usually a doctor or hospital) will be paid a fee for each service provided to the patient covered under the policy. With fee-for-service insurance, patients choose their doctors and submit a claim to their insurance companies for reimbursement. Patients will only be reimbursed for “covered” medical expenses; that is, the covered services listed in the plan’s benefits summary.
