Fixed Benefit Plans
Fixed benefit plans, or fixed indemnity health insurance, is a supplemental form of health insurance that can help you afford out-of-pocket health care costs. These plans provide beneficiaries with cash benefits in the event of a critical injury or serious illness by paying out a set amount of money to help pay for specific medical expenses.
Fixed indemnity plans are available to all people. Once you enroll in a plan, you can cancel the policy whenever you want. In most cases, there will be no penalties for cancelling.
If you have more questions about your eligibility for these plans, don’t hesitate to contact us. Our goal is to keep you educated on all your options so you can make the best decision.
Fixed indemnity health insurance is not a major medical insurance plan, so you can’t use it to cover all of your health insurance needs. It is meant to be used as a supplemental coverage option, therefore you should use it in tandem with a traditional health insurance plan. Fixed benefit plans do not cover the ten essential health benefits mandated by the Affordable Care Act either, so maintaining adequate coverage is important.
Fixed benefit plans do cover certain medical services, though. Some things that are covered include:
- First day hospital coverage
- Daily hospital coverage
- Intensive care unit coverage
- Emergency room visits
- Ambulance services
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When you need your benefits, your fixed indemnity plan will pay directly for treatments. The money provided to you is given to you in cash to pay for particular medical expenses. This is unlike major medical plans, which usually pay your medical provider rather than you. You do have the option to use your fixed benefit plan payout for other expenses, and it is possible to have the payout go directly to the physician or hospital.
Fixed benefit plans often come with relatively low premiums, and they can be available for as low as $25 a month. Some plans may be less expensive and offer lower premiums in exchange for fewer cash benefits. Another benefit of fixed indemnity plans is that these plans have no copayments, coinsurance, or deductibles. This limits the cost of the plans and makes it easy to maintain this form of coverage.
With this type of coverage, you should expect a number to the limit of days that are covered for any medical expense. For example, your plan may limit your benefits to a few hospital visits per year or a specific number of days in the hospital per year. Fortunately, indemnity plans do not have networks like traditional insurance plans do. Therefore, you won’t experience excess costs for going out-of-network for health services. This could allow you to see specialists that would typically be out-of-network for your main health insurance plan.
Try Out A Fixed Benefit Plan
A fixed benefit plan can make health care visits far more affordable, so why not give them a try? Give T&T Insurance a call now to learn more about the fixed benefit plans offered in the Petosky, MI area. If you are close by, visit our offices or give us a call at 800-MI-NORTH (800-646-6748). We’re here to help and will find a plan that works for you.