This content is for general informational purposes and does not constitute medical, legal, or financial advice. Healthcare rules and costs change annually. Last reviewed: January 1, 2025. Always verify current details with your insurer, employer, or a licensed healthcare navigator.
Indemnity Plan (Fee-for-Service)
A traditional plan letting you see any doctor and getting reimbursed a set amount per service.
Full Definition
An indemnity plan (also called a fee-for-service plan) is a type of health insurance that allows you to see any doctor, specialist, or hospital without referrals or network restrictions. The insurer reimburses either a fixed amount or a percentage of the billed amount for covered services. You typically pay upfront and are reimbursed later. Indemnity plans offer maximum flexibility but tend to have higher premiums and more administrative work than network-based plans.
Real-World Example
With your indemnity plan, you can see any doctor in the country without a referral. After a visit, you submit the bill to your insurer and receive reimbursement for the covered portion — typically within two weeks.
Related Terms
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