Indemnity Health Insurance:
Also referred to as fee-for-service, an indemnity plan allows absolute freedom in selecting physicians or medical facilities, and permits self-referral to a specialist. A yearly deductible must be met before the insurance company pays coinsurance. Coinsurance is set at a predetermined rate in which the insurance company pays that percentage of costs. This plan requires the use of patient claim forms and reimbursement checks.

Indemnity Plan Advantage: You can go anywhere for coverage. There is no gatekeeper.

Indemnity Plan Disadvantage: The more use of the policy, the more it will cost you (because insurance companies want to control medical costs).