Indemnity plan - A type of medical plan that reimburses the patient and/or provider
as expenses are incurred.
Conventional indemnity plan - An indemnity that allows the participant the choice
of any provider without effect on reimbursement. These plans reimburse the patient
and/or provider as expenses are incurred.
Preferred provider organization (PPO) plan - An indemnity plan where coverage
is provided to participants through a network of selected health care providers (such
as hospitals and physicians).
The enrollees may go outside the network, but would
incur larger costs in the form of higher deductibles, higher coinsurance rates, or nondiscounted
charges from the providers.
incur larger costs in the form of higher deductibles, higher coinsurance rates, or nondiscounted
charges from the providers.
Exclusive provider organization (EPO) plan - A more restrictive type of preferred
provider organization plan under which employees must use providers from the
specified network of physicians and hospitals to receive coverage; there is no
coverage for care received from a non-network provider except in an emergency
situation.