Indemnity Plans Slowly Being Phased Out
Indemnity plans are health insurance plans that have been around for a long time. As a matter of fact they used to be the only form of health insurance there was until the 70's came along with HMO and PPO plans. An indemnity plan is one that has a deductible and pays a percentage of the R&C charges while the insured pays in at a lower percentage. These plans have always been very popular amongst the public but since they tend to provide good coverage they are also very expensive.
Health insurance premium traditionally were paid by the employers. However, as medical insurance cost premiums rose, employers looked for alternative plans, hence movement into more Health Maintenance Organization and Preferred Provider Organization plans. While these plans offer plans with lower premiums it does come with restrictions. They usually have to stay in network (choose doctors within a list of providers) to receive the maximum of the plan.
Indemnity plans are becoming a plan of the past as health care premiums continue to rise and fewer employers are bearing the entire cost of the premiums. Many are only paying a certain amount or passing the entire cost to their employees. With budgets being tight More employees are opting for health care plans that have a lower premium cost.
As the movement of indemnity plans move out of favor and being replaced with HMO and PPO plans more doctors will be faced with the reality of joining and being a participant in these plans. Doctors tend to make less money by being in these plans but the reality dictates that they may not be able to sustain their current salaries if more people are restricted to the doctors listed within their plans. It then becomes a choice of seeing more patients at a lesser fee or fewer patients at a higher fee which will be limiting their client base.
Indemnity plans allow people more choices and allow doctors to set their own fees for services rendered. Many of the best doctors choose not to be in these plans very simply because they do not want to be associated with the other doctors in the group feeling that they are a lesser quality or provide substandard care. Although, this is not truly the case in most plans it is a misconception that many doctors hold. It is important to realize that an HMO and a PPO are plans that group many health care providers together and therefore it is not just business but a relationship that many doctors don't want any part of. If the people are to keep their freedom of choice then indemnity plans need to stay around.
Health insurance premium traditionally were paid by the employers. However, as medical insurance cost premiums rose, employers looked for alternative plans, hence movement into more Health Maintenance Organization and Preferred Provider Organization plans. While these plans offer plans with lower premiums it does come with restrictions. They usually have to stay in network (choose doctors within a list of providers) to receive the maximum of the plan.
Indemnity plans are becoming a plan of the past as health care premiums continue to rise and fewer employers are bearing the entire cost of the premiums. Many are only paying a certain amount or passing the entire cost to their employees. With budgets being tight More employees are opting for health care plans that have a lower premium cost.
As the movement of indemnity plans move out of favor and being replaced with HMO and PPO plans more doctors will be faced with the reality of joining and being a participant in these plans. Doctors tend to make less money by being in these plans but the reality dictates that they may not be able to sustain their current salaries if more people are restricted to the doctors listed within their plans. It then becomes a choice of seeing more patients at a lesser fee or fewer patients at a higher fee which will be limiting their client base.
Indemnity plans allow people more choices and allow doctors to set their own fees for services rendered. Many of the best doctors choose not to be in these plans very simply because they do not want to be associated with the other doctors in the group feeling that they are a lesser quality or provide substandard care. Although, this is not truly the case in most plans it is a misconception that many doctors hold. It is important to realize that an HMO and a PPO are plans that group many health care providers together and therefore it is not just business but a relationship that many doctors don't want any part of. If the people are to keep their freedom of choice then indemnity plans need to stay around.
