Traditional indemnity is the kind of plan we all grew up with. The member is reimbursed for either part or all of the remaining covered expenses. Employees have access to the doctors they want for most types of medical care. Generally greater cost to employees, who may pay deductibles as well as their portion of coinsurance. Payment for care is often required up front.
Reimbursement comes to employees after they receive care.
Health care costs may be difficult for employees to predict. And there's paperwork needed to document the entire process. Also, indemnity plans generally don't provide coverage for preventive care. In this case, an indemnity plan may make sense. This type of plan is a lot like a traditional indemnity plan.