In this case, an indemnity plan may make sense. This type of plan is a lot like a traditional indemnity plan. What usually makes managed indemnity different is precertification, which means that some of the care members receive is subject to pre-approval. Employees have access to any doctor they want. Also, by managing care through precertification, costs are usually slightly lower for both employers and employees than traditional indemnity plans.
Costs are usually still higher for employees than managed care plans.
And there's paperwork necessary throughout the process. If your employees live in different states or travel frequently, or if they don't place a high vale on preventive care and wellness programs, but you think it's time to do something to lower your health care premiums, managed indemnity may be your solution. In PPO plans, a network of doctors has agreed to give medical care to plan members at a discounted rate. If they visit a doctor outside the network, employees typically pay more and get reimbursed for less. PPO plans are designed to manage costs more than indemnity and managed indemnity plans because they encourage members to choose from participating doctors.