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indemnity plan

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indemnity plan,
n 1. a plan that provides payment to the insured for the cost of dental care but makes no arrangement for providing care itself.
2. a dental plan in which a third-party payer provides payment of an amount for specific services regardless of the actual charges made by the provider. Payment may be made to enrollees or by assignment directly to dental professionals. Schedule of allowances, table of allowances, and reasonable and customary plans are examples of indemnity plans.


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Indemnity plan (or fixed benefit): Indemnity plans pay a fixed amount for specific services rendered; the amounts are predefined.
Individual dental plans fall into two categories- Preferred Provider Plans (PPO) plans and Indemnity Plans.
The Indemnity plan approach represents healthcare as it was offered in the days before managed care.
 
 
 
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