Indemnity Plan

Definition:

A non PPO or HMO plan, a plan that does not have preferred provider networks or many cost containment features.

Application:

These plans were popular in the early to mid-1980's before the advent of managed care. A traditional indemnity plan does not offer financial incentives to see certain providers, because it does not have a network of contracted physicians. These plans are difficult to find and often rather expensive.

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