A hospital and doctor fixed indemnity insurance plan pays you a set benefit amount when you receive a specific medical service covered in the plan. It’s that simple.
Other sites might call it fixed-benefit insurance, fee for service insurance, or medical indemnity insurance, but they are all talking about the same thing: a predetermined cash benefit paid out when you use a specified health care service.
Complicated name, but simple concept.
Fixed indemnity insurance is designed to supplement your major medical plan.
Generally, your health insurance works on a “you pay first” basis. You pay a deductible amount, you pay a copay for a certain service, or you reach a maximum out of pocket expense for the year. In all those cases, your insurance covers your expenses after you hit those benchmarks.
A hospital and doctor fixed indemnity plan works opposite to health insurance. You go for a covered hospital or doctor service and then you get paid a set amount of cash for that service. You typically don’t have to meet a deductible or pay a copay. You’re paid the set benefit when the claim is submitted for that covered service.
You might hear this type of coverage called first dollar coverage, because you get your benefits paid first, without having to hit a deductible or copay.
Your major medical insurance may have network restrictions for your care, so keep those in mind. Also, some hospital and doctor plans offer service rate discounts at certain locations, so carefully choosing where you get your care can help you save.