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Indemnity Plan
An Indemnity
Plan is sometimes referred to as a fee-for-service plan.
Choice:
With an indemnity plan, the policyholder may choose any medical
provider. The provider or policyholder submits the bills to the insurance
company for payment.
Costs:
With most indemnity plans the policyholder is required to
pay a deductible each year before the insurance starts paying claims.
Once the deductible is met, the insurance usually covers 80% of the usual
and customary rates. If the provider charges more than the customary rates,
the policyholder pays both the coinsurance and the difference.
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