Medical indemnity or fee-for-service plans provide a fixed payment for certain healthcare services. For example, if you visit a doctor, the plan might pay you a set amount—such as $50—regardless of the actual cost of the visit.

• Medical indemnity plans can help cover out-of-pocket expenses like copays and coinsurance when used alongside other insurance. These plans can be purchased as standalone coverage or as part of an insurance package. However, like short-term plans, medical indemnity plans do not meet the Affordable Care Act (ACA) requirements and will not help you avoid state tax penalties. They are also ineligible for government subsidies and typically do not cover preexisting conditions. Additionally, indemnity plans may have limits on benefits, such as per-incident, annual, or lifetime caps.
• While medical indemnity plans aren’t suitable for everyone, they can be a helpful option if you’re looking to cover specific medical costs or supplement other health insurance.