What is fixed indemnity health insurance? It’s a type of coverage that protects you from the high costs that can come with accidents and injuries. This article explains what this kind of insurance covers and how to find and purchase it.
Who’s Eligible for Fixed Indemnity Health Insurance Plans?
Fixed indemnity health insurance is open to everyone, and you can cancel at any time.
Do These Plans Cover Essential Health Benefits?
Fixed indemnity health insurance is not an all-around plan like major medical. It does not cover the ten essential benefits required by the Affordable Care Act. You can use it to compliment your current major medical plan in order to lower out-of-pocket costs while protecting you against unforeseen expenses.
What’s Covered Under Fixed Indemnity Health Insurance?
It varies from plan to plan, but fixed indemnity coverage may include the following:
- Daily Hospital Coverage: Covers daily hospital stays
- Outpatient Physician Care: Covers outpatient physician care, such as an out-of-hospital surgery or doctor’s office visit for a sprained ankle.
- Inpatient Physician Care: Medical treatment in the hospital. You can also purchase this coverage separately from your long-term major medical plan.
- Prescription Drugs: Covers prescription drugs. You can also purchase this coverage separately from your long-term major medical plan.
- Lab Services: Outpatient lab services, such as a blood test or urine analysis.
- Dental Care: Covers dental care and routine dental procedures, including X-rays and cleanings.
- First Day Hospital Coverage: covers your hospital expenses from the time you check in on your first day of care up until 90 days after discharge.
- Emergency Room Coverage: covers emergency room charges at any location, whether inpatient or outpatient.
- Hospital Stay Benefit: pays for a fixed daily rate to cover lodging and meals while hospitalized.
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What Is a Fixed Cash Benefit and How Does It Work?
Fixed indemnity policies will give you cash equivalent for any specific medical ailments or injuries that may arise. These fixed indemnities can be in the form of a yearly amount, deductible with each appointment, or any number of methods.
Unlike traditional medical insurance, fixed indemnity health insurance usually pays out benefits directly to you in cash straightaway. With most plans, your healthcare provider may authorize direct payment of benefits for specific services. You are entitled to request that your benefits go directly to the physician or hospital at which you receive treatment, when applicable.
How Much Money Is Included in a Cash Benefit?
The amount of money you will receive for covered services varies depending on your plan and the medical service provided. Lower-end services like X-rays usually have a benefit as low as $50. At the same time, surgery may provide up to $2,000 in benefits per incident. These figures are predetermined by the cost of the service and your plan coverage.
How Much Does Fixed Indemnity Health Insurance Cost?
Fixed indemnity health insurance plans typically have low monthly premiums, and they often supplement major medical coverage. The plan may also have a lower premium in exchange for fewer cash benefits; this is on top of the amount you already pay per month.
Fixed charity plans can carry no yearly deductible. You receive a cash safeguard without having to pay for the medical bill yourself.
Fixed indemnity health insurance doesn’t require a copay.
Fixed indemnity health insurance plans are designed to cover fixed expenses. No copay is required for these types of plans, and there usually is no annual limit on coverage.
Are There Extra Costs for Going Out-of-Network?
With a fixed indemnity health insurance plan, you are not limited by the network. You won’t be required to switch doctors when you need specialist care with this type of insurance.
Are There Any Limits?
With fixed indemnity health insurance, you will have a limit. For example, there might be a limit of the number of days covered for certain medical expenses (e.g., four hospital visits or 5-day hospital stay) or a lifetime cap on benefits.
Should You Get Fixed Indemnity Health Insurance?
If you are struggling to afford your out-of-pocket costs, fixed indemnity health insurance may be the answer. This type of policy offers upfront coverage at a set price without any insurance company involvement or premium payment.
For those looking for a more flexible health plan at an affordable cost, fixed indemnity health insurance plans are an appealing option. With this type of coverage, you have the option to cover all or some of your medical expenses with cash directly from the insurance company.
- Premiums – www.investopedia.com/terms/p/premium.asp
- Deductibles – www.healthcare.gov/glossary/deductible/
- Coinsurance – www.healthcare.gov/glossary/co-insurance/
- Copay – www.healthcare.gov/glossary/co-payment/
- Affordable Care Act – www.healthcare.gov/glossary/affordable-care-act/
When Can You Enroll?
Fixed indemnity health insurance is open year-round so that you can easily add it to your existing plan.