A traditional indemnity plan offers you and your employees substantial freedom in choosing which doctors and hospitals to use, but such plans typically have higher out-of-pocket costs and more paperwork.
Under an indemnity plan, you may see whatever doctors or specialists you like, with no referrals required. Though you may choose to get the majority of your basic care from a single doctor, your insurance company will not require you to choose a primary care physician.
However, this kind of freedom will cost you. You'll likely be required to pay an annual deductible (typically between $500 and $1500) before the insurance company begins to pay your claims. Once your deductible has been met, the insurance company will typically pay your claims at a set percentage of the "usual and customary charge" for the service. The "usual and customary charge" is the amount that healthcare providers in your area typically charge for any given service.
Additionally, an indemnity plan may require that you pay up front for services and then submit a claim to the insurance company for reimbursement.
