One of the best ways to describe an indemnity health insurance plan is the freedom to choose the doctor or the hospital.
This type of insurance plan is also known as fee-for-service plan.
Typically, the insurance companies pay approximately 80% of the bill while the remaining 20% has to be paid by the plan holder.
This is one of the most expensive insurance plans and has the maximum out-of-pocket costs.
  How Indemnity Health Insurance Plan Works?   Indemnity plans are best chosen for their flexibility and freedom to choose the doctor/ health care specialist/ hospital.
You do not have to do anything until your medical treatment gets over.
On the completion of the medical treatment, you need to submit a claim to the insurance provider.
To make this claim, you need to ask your doctor to generate an expense submission.
This when submitted to the insurance provider would ultimately result in reimbursement.
You would be only reimbursed for the medical costs specified in your insurance plan.
Indemnity insurance plans can be customized to suit the needs of an individual policy holder.
    In case of indemnity plan you need to pay a deductible, the amount of the covered medical costs.
Once you pay the deductible, the insurance provider would pay a percentage of the usual and customary charge for the covered medical expenses.
Most of the insurers generally pay 80% of the usual and customary charge and the rest 20% which is known as coinsurance has to be paid by you.
  In case of indemnity health insurance plan, though you may have to pay a higher monthly insurance premium, pay quite high upfront costs and also submit claims, your deductible amount would be much lesser and most importantly your insurance coverage would be wider.
    Indemnity health insurance policies are also known as handed-down health plans.
This type of plan may be expensive but often cover the usual health expenses that may arise, that may be excluded by other insurance policies.
Another great advantage of indemnity plan is that you get to choose your own doctor or medical facility.
This benefit may seem worthless initially, but there has been increased concern in people's mind about their doctors and the treatment that they would receive.
Consider all such benefits before choosing your health plan.