What are indemnity health plans?

Indemnity plans let you choose any doctor you want and change doctors at any time. A referral is not usually required to see a specialist or to get x-rays or tests, but you will need your medical records. Indemnity plans only pay part of your medical bills, making you responsible for the rest. Out-of-pocket costs will probably be higher for certain services and you will need to spend a determined amount (deductible) each year before your plan begins to pay benefits. Deductibles can range from $100 to $300 per year per person or $500 or more per year for a family. Indemnity plans usually pay about 80 percent of the bill after the deductible has been met so you must pay the remaining 20 percent (coinsurance). Once you reach your out-of-pocket maximum -- a predetermined amount in a given calendar year -- the indemnity plan pays in full.