What does "indemnity insurance" provide?

Indemnity insurance is designed to offer flexibility in health coverage by reimbursing policyholders for a wide range of healthcare expenses. This type of insurance allows individuals to choose their healthcare providers without being limited to a network, which is a key feature setting it apart from managed care plans.

When a claim is made, the indemnity policy typically covers a portion of the cost incurred, based on a set fee schedule, allowing for reimbursement after the insured receives care. This can encompass various services, including hospital stays, outpatient care, and specialist visits, ensuring that patients have broader access to necessary medical services and can choose providers that suit their needs.

The other answer choices are more restrictive in their coverage parameters. For example, options focusing solely on hospitalization, preventive services, or wellness check-ups do not capture the comprehensive nature of indemnity insurance, which is intended to provide broader financial support for diverse healthcare expenditures.