What is an Indemnity Plan (Fee-for-Service)?
Indemnity plans are also called Fee-for-Service. This type of plan allows you to go to any health care provider. Members don’t have to limit themselves to physicians or hospitals under a network. The medical bill is sent to the health insurance company and they pay for a portion of the cost.
There is usually a deductible for this plan. Once the member has reached the deductible, the member only needs to pay a small portion of the cost.