Indemnity Health Insurance advantages

If you compare Indemnity Health Insurance with the new forms of insurance with their network of medical providers as their backbone, you will find these newer forms of insurances as relatively cheaper. However, even though Indemnity Health insurance is more costly than the newer forms of insurance, it has advantages when you consider the over-all aspect of the indemnity health insurance coverage.

Indemnity health insurance is also known as the traditional health insurance, while the more cheaper and new forms of health insurance coverage are the preferred provider organizations or the PPOs and the point of service or POS.

With traditional insurance, you can select your own doctor to attend to your medical needs and also the facility or the hospital wherein you would want to be confined. Prescription medicines would likewise be included in your coverage and many more miscellaneous medical related expenses. The only thing here is that you have to pay a higher monthly insurance premium.

Upon settlement of your hospital bills, you will also have to pay up front a fraction of the bill and the insurance will take care of the rest. Another good thing about the traditional insurance is that you can be hospitalized anywhere across the country and have your own doctor to attend to your medical needs without any problem with your insurance coverage.

The advantage of traditional health insurance will prove to the disadvantage of these new forms of insurance. Since they have to operate on a network of medical providers and medical facilities such as clinics and hospitals, you will be denied medical service if it so happens that you are traveling in some parts of the country and there are no medical providers and facilities that are part of the medical network of the insurance company you are insured with.

As such, any medical services you will avail of have to paid in full. And when it comes to billing even when you are serviced by their networks of medical providers and hospitals, there are many things that are medical related expenses that will not be covered by this newer kind of insurance.

You might be wondering why these new forms of insurances such as PPOs and POS have to go to the extent of having their own network of medical providers such as doctors, hospitals and clinics for their insured clients. Well, the simple reason for this is to keep down the medical cost.

The arrangement between the insurance company and their network of medical providers would be that all the insured clients of the insurance companies will be services by the medical providers of their network; in exchange, these medical providers in the network should give a very good discount on their medical services rendered so that in turn, the insurance companies can charge low cost insurance premiums to their insured clients.

Actually, this is something of a win win situation for the 3 parties concerned. The insurance companies for more insurance business because of low insurance charges, for the insured clients for low insurance cost, and for the medical providers for an assured number of patients as supplied to them by the insurance companies.

The main advantage therefore of a traditional insurance compared to these new and cheap forms of insurances is you are not limited in your choice of medical providers and facilities for your medical needs.