Initially, mostly all of the health insurance plans were indemnity
plans. Then came the HMO's and the PPO's plan. Indemnity plans were
considered fee for service plans. Each member of the plan had to meet a
pre determined deductible and when that amount was met, the plan
participants would then be responsible for paying a percentage of the
bill, usually 20%.
Initially, mostly all of the health insurance plans were indemnity plans. Then came the HMO's and the PPO's plan. Indemnity plans were considered fee for service plans. Each member of the plan had to meet a pre determined deductible and when that amount was met, the plan participants would then be responsible for paying a percentage of the bill, usually 20%. There was much flexibility as to what doctors participants could go to and they provided good coverage but it came at a high price for the premium.
Many employers have opted out of indemnity plans because they are so very expensive and have replaced them with Health Maintenance Organization Plans and Preferred Provider Organization Plans that tend to cost a lot less in premiums and also usually offer no deductible and a flat fee per visit for the plan. Employees usually get some choice over their providers and for the lesser cost are relatively happy with these plans.
Indemnity plans are becoming a plan of the past as health care premiums continue to rise and fewer employers are bearing the entire cost of the premiums. Many are only paying a certain amount or passing the entire cost to their employees. With budgets being tight More employees are opting for health care plans that have a lower premium cost.
The problem with this trend is that more doctors will be driven into HMO and PPO plans to be able to survive and many doctors who choose to remain outside of these programs will wind up making a less lucrative salary. Eventually, being a medical professionally may not be the path that many people choose because of this issue. And of course, this will limit the choices of the many Americans who want to be in control of their own health care.
There will always be some indemnity plans offered as they provide plan participants more choices in the doctors they choose and the coverage it provides, however, fewer people will be able to afford these plans. Today's economic conditions do not promote growth in the indemnity plans and the new healthcare reform isn't likely to change that.
