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What is the definition of indemnity insurance?

Indemnity insurance is a contractual agreement in which one party guarantees compensation for actual or potential losses or damages sustained by another party. Most commonly, it is an insurance policy designed to protect professionals and business owners when found to be at fault for a specific event such as misjudgment.

Why do you suppose it has largely been replaced by managed care?

Managed care has three categories witch various similarities and differences. The indemnity plan has only one category. This limits the options available to clients who have health insurance under this plan

What are the three main types of managed care organizations?

The three main types of managed care organizations are Preferred Provider Organizations (PPO), Health Maintenance Organizations (HMO), and Point of Service (POS).

What is the definition of indemnity insurance?

Indemnity insurance is a contractual agreement in which one party guarantees compensation for actual or potential losses or damages sustained by another party. Most commonly, it is an insurance policy designed to protect professionals and business owners when found to be at fault for a specific event such as misjudgment.

Why do you suppose it has largely been replaced by managed care?

Managed care has three categories witch various similarities and differences. The indemnity plan has only one category. This limits the options available to clients who have health insurance under this plan

What are the three main types of managed care organizations?

The three main types of managed care organizations are Preferred Provider Organizations (PPO), Health Maintenance Organizations (HMO), and Point of Service (POS).

What are the pros and cons of each type?

1. Health Maintenance Organizations

The common features of Health Maintenance Organizations (HMO) plans are:

• Provision of medical services on a prepaid basis
• Persons under the plan pay a fixed monthly fee regardless of their monthly medical expenses
• HMO members are required to seek medical services from physicians and facilities under the HMO network.

2. Preferred Provider Organizations

Common features of the PPO plans are:

• They comprise of health facilities and personnel that provide medical services to a specific group of people.
• PPO members are required to pay for the services they get from their own finances.
• Costs of the services under this plan are negotiated earlier between healthcare service providers and the sponsors of PPOs.

3. Point of Service

Some of the features of the Point of Service plans are:

• Insurance cover holders of this plan do not pay for deductibles and incur minimum co-payment when they use services from a service provider within their network.
• Under this plan, you will be required to choose a primary health care expert responsible for all your referrals within the POS network.
• Those who seek medical services outside their POS network are subjected to a deductible. The deductible can range from $300 and above for individuals and $600 and above for families.
• About 30% of the co-payment goes to offset the physicians charges