Fixed indemnity insurance pays predetermined dollar amounts for specified medical events or services. Regular comprehensive health insurance pays according to the plan's covered benefits, negotiated rates, deductibles, copays, and coinsurance.
Because the fixed benefit may be much smaller than the actual medical bill, fixed indemnity coverage should not be assumed to replace comprehensive health insurance. It can also have benefit limits and exclusions that differ significantly from ACA compliant medical coverage.
If you are considering a fixed indemnity policy, ask whether it is intended as supplemental coverage. Compare the scheduled payments with realistic healthcare costs and confirm that you have appropriate primary medical coverage.
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Fixed indemnity insurance pays you a fixed amount based on the type of procedure/appointment you have. (Ex: $100 for a specialist dr visit, $1000/day hospital stay) This differs from regular health insurance in several ways, but the most important way being there is NO max-out-of-pocket on a fixed indemnity plan!!! Consumers really get screwed when agents don't explain this!!
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