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Indemnity plans are referred to as traditional fee-for-service plan designs, where the indemnity provider is paid a pre-determined fee for each service provided.
Indemnity plans offer full coverage for most services after the member pays a copayment or a deductible. Some Indemnity plans require the member to pay a percentage of the charges for certain services, called co-insurance. There may also be a limit on the amount of co-insurance a member or family must pay in a given year.
Members may choose from any participating indemnity provider (there is no primary care provider who coordinates care) and no referrals are required. Prior authorization may be required for certain services, so be sure to check member benefits and eligibility.