Indemnity Health Insurance in Columbia

While you are considering health insurance in Columbia, you first need to decide between indemnity and HMO or Health Managed Organization. HMO plans of health insurance in Columbia are much more cost effective than indemnity plans. But HMO also doesn't provide much flexibility or options in comparison to an indemnity plan. The latter provides a great deal of flexibility and is also considered to be more expensive than a HMO plan.

Benefits of an Indemnity Health Insurance in Columbia

Why would anyone want to pay more money and buy an indemnity plan? Well, in this plan of health insurance in Columbia you can select the services of any health care provider you wish. For example, if you have a family doctor who knows your medical history very well and you wish to continue using his services, then you might opt for an indemnity plan. An indemnity plan is also advisable for patients suffering from a prolonged diseases. Such diseases often require special care and, in such a case, an indemnity plan might work out to be more affordable. You should only do this in case your preferred doctor or specialist is not affiliated with the HMO network that is given to you.

How an Indemnity Health Insurance in Columbia Works

If you have undergone any medical treatment and if you are covered under an indemnity health insurance in Columbia, then either you or the health care provider is required to forward the bill of expenses to the insurance company. After verifying the expenses, the company will pay the bill. But before this can happen, you are required to have paid your deductibles on time. A deductible is a sum of money that you have to pay monthly or annually and this sum is used to pay a part of your medical bills.

Costs of an Indemnity Health Insurance in Columbia

It goes without saying that you need to pay premiums for your indemnity policy as well as a deductible. These are the first costs associated with your plan. Next, your indemnity policy only pays up to 80% of the total medical costs and you are supposed to pay the balance 20%. This is known as a co-insurance and is a cost that is in addition to the deductibles that you pay. But this doesn't mean that you continue paying through your nose for medical services. If your share of the costs exceeds an annual figure, then all the balance costs will be borne by your health insurance company in Columbia. This annual figure is often intimated to you beforehand. There is also a lifetime cap of usually $1 million, and beyond this, your indemnity health insurance in Columbia will take care of all medical expenses.