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Basic Information about Indemnity Care Plans

By Tim Gorman

Indemnity care plans, also called “fee for service” plans, have been popular for many years. However, things have changed. Although there are those who prefer indemnity care plans today, more and more people are opting for managed care plans. This is because managed care plans the type of plans that are being offered by their employers. In short, more people are on managed care plans not because they choose to, but because this plan is what their employers are offering them.

With an indemnity care plan, you have the freedom to go to any medical care provider even without a referral. Thus, with this type of plan, you can avail of the services of the best specialist in the profession. The medical professional need not belong to any of the ‘network’ of providers. In a managed care plan, you have to choose from a list of medical care providers belonging to the insurance company's network. You can only visit a specialist after you get a referral.

The freedom that comes with an indemnity care plan comes with an expense. You receive a bill when you use the services of a medical care professional. You forward this bill to your insurance company, who then decides how much it will pay by referring to the “reasonable and customary” charges list. Usually, an insurance company will pay 80 % of the bill and you will have to shoulder the remaining 20%. If you have received care from a top class specialist, the amount you pay will increase substantially. You will have to pay his percentage along with the difference from what your insurance company pays up.

Aside from the charges mentioned above, you will also need to pay a premium and an annual deductible should you go with an indemnity care plan. Although this type of health insurance plan seems costly, it may be just what you, and many other people, actually require.

A Preferred Provider Organization or PPO closely resembles an indemnity care plan. In a PPO, you can choose from a wider choice of medical care providers. And since the charges are pre-negotiated, your costs will be lower. As a PPO participant, you can also choose a provider outside the network and bear the extra costs. You will have to satisfy your deductible first before you choose anyone outside the network. After this has been taken care of, your insurance company pays up less than what it would have if the medical provider had been from their network.

It is very difficult to say which plan is better. Since each individual has different and unique needs, you will have to decide for yourself which health insurance plan to choose. If you can afford higher costs and you want to have the freedom to choose medical care providers, go for the Indemnity Care plans. If you want the freedom to choose, albeit a limited one, and still keep your medical costs under control, go for a PPO.

About the Author

Tim Gorman is a contributor to http://Best-Free-Insurance-Quotes.com

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