As a business owner, you are responsible for obtaining your own health insurance, and indemnity insurance may be a good match for your needs. In addition, if you provide health insurance for your employees, you may wish to consider indemnity insurance for them as well.

As with most insurance plans, with indemnity health insurance you will have a deductible that you have to meet before they will reimburse you for covered insurance. After you meet this deductible, the insurance company will pay a percentage of what they consider is a usual and customary charge for covered charges. You are responsible for any charges that the insurance company doesn't cover. Remember that there will be a lifetime limit on your indemnity medical insurance policy. Your lifetime limit should be at least one million dollars, but more is better.

1. Indemnity health plans allows the consumer to choose their primary care physician. You don't need a referral to receive care from other health care professionals.

2. Most indemnity health insurance providers require the consumer to pay for the service up front and then file paperwork to receive a full or partial refund.

3. Indemnity health insurance plans usually carry a much higher deductible than managed health insurance plans.

Action Steps
The best contacts and resources to help you get it done

Get quotes for group indemnity medical insurance plans

Find out what it will cost you to provide indemnity health insurance coverage for yourself and your employees. Decide whether you will expect your employees to cover part of the monthly premium.

I recommend: Request a free indemnity health insurance policy quote for your employees and yourself from eHealth, Inc. Compare this quote to one from HealthInsurance.com Inc. and quotes from other companies to ensure you get the best policy.

Find an insurance company that sells indemnity health insurance

Remember that not all insurance companies are indemnity medical insurance providers, but some specialize in indemnity insurance. Get quotes from both types; they may have different deductibles and co-insurance rates.

I recommend: Companies like Blue Cross Blue Shield and Cigna offer health insurance indemnity plans. When you get a quote from large companies such as these, you can easily compare indemnity plans to managed care plans.

Visit a local agent to discuss an indemnity health insurance plan

Sometimes it's easier to understand what indemnity health insurance plans have to offer when you are able to discuss them face to face with an agent. Contact a local agent and request a meeting to discuss what their indemnity plans offer.

I recommend: Large companies like UniCare and Mutual of Omaha have local offices and agents who can help you understand and choose an indemnity health insurance plan.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Remember that if you have an indemnity health plan, you can see any doctor or visit any hospital you like if you are traveling within the US.
• •  Indemnity insurance doesn't cover preventative care, such as well-child visits and check ups. You need to decide whether this is an issue for you and your company.
• •  Control your health care expenses with an indemnity health plan by choosing health care providers whose fees aren't higher than those which insurance companies consider usual and customary.