Finance Assistant Secretary Paola Alvarez earlier said that the program is unlike the traditional indemnity insurance
that takes a long time to assess and process.
Finance Assistant Secretary Paola Alvarez has said during the early stages of the program that unlike the traditional indemnity insurance
that takes a long time to assess and process, this program will have quick-disbursing payouts.
Traditional indemnity insurance
, on the other hand, requires an assessment of the value of the insured's loss, and the claims handing and loss adjusting process can slow down the release of a claim payment.
Elaina George says the United States needs to return to a health care finance system based more on catastrophic health insurance, traditional indemnity insurance
and patients' own cash, and less on efforts by giant insurers or giant, hospital-based "health care systems," to manage care.
The new system resembles traditional indemnity insurance
, and the issue is no longer whether a physician is authorized to provide a service.
Strategic organizational management was critical for BCBS to transition successfully from a traditional indemnity insurance
firm to a managed care environment during the past decade.
While almost all traditional indemnity insurance
plans provide coverage for some prescription drugs, only about half cover any of the five contraceptive methods available by prescription--oral contraceptive pills, the intrauterine device, Depo Provera, Norplant and the diaphragm--all of them prescribed to women.
Employers have terminated traditional indemnity insurance
plans in favor of managed health care programs, which control cost by negotiating discounts with medical providers and managing the delivery of health care.
By essentially making health care free at the point of service, both traditional indemnity insurance
and managed care absolved patients of their reasonable share of cost and risk, and therefore placed them in an economically riskless environment not unlike that of fee-for-service providers.
Finally, this section addresses practical matters related to health care coverage and future planning such as: traditional indemnity insurance
, managed care, claim submission and denial, medical choices, living wills and durable power of attorney.
Demand incentives under traditional indemnity insurance
usually include charges to patients, which may take the form of deductibles (the amount an individual must pay before insurance begins to pay for part of the costs of care) and copayments.