Health · Chapter 14 · Traditional Plans
Indemnity (Traditional) Health Plan
Definition
Traditional major medical insurance from commercial insurers: the insured sees any provider, pays, and is reimbursed for covered costs (subject to deductible, coinsurance, and 'usual, customary & reasonable' limits). National scope, no network. The right of assignment lets the insured send benefits directly to the provider.
In plain English
Old-school insurance: go anywhere, file a claim, get paid back.
Exam tip
⚠️ Don't confuse with a HOSPITAL indemnity plan (fixed daily amount). In major-medical context, 'indemnity plan' = traditional reimbursement.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms