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Is your current HMO or PPO health insurance plan too restrictive? If so, consider switching to an Indemnity plan.
Kentuckiana Insurance
When unexpected medical costs or legal responsibilities arise, the right insurance coverage can mean the difference between financial peace of mind and out-of-pocket chaos. We specialize in helping individuals and businesses in Louisville and throughout Kentucky find indemnity insurance solutions that provide real value and real support when it matters most.
As a local independent insurance agency, we work with leading providers, including those offering hospital indemnity insurance, professional indemnity insurance, and indemnity health insurance so you get the flexibility and protection you need. Whether you’re a business owner looking for general liability coverage or an individual interested in supplemental health benefits, we’ll guide you through your options with clarity and care.
Insurance FAQ
Indemnity insurance is a type of coverage where the insurance company pays first, with no specific out of pocket for the member to meet, prior to payment for services. This product can be used as the persons primary insurance or secondary to another health insurance plan. The benefit summary will list the percentage or dollar amount that will be paid per service or per day. It will list any maximums, if applicable, for the amount paid, per service or per day. There is no prior authorization or network requirement for benefits to pay in full. Having other coverage does not impact the amount paid per service or per day. The provider can file the claim or the member can choose to submit the claim themselves, and have the payment sent directly to the policy holder. These are not cookie cutter plans, they can be tailored to each individual client. Rates are competitive because plans are underwritten. The carrier does not approve every applicant. People have to be fairly healthy prior to enrollment. Once enrolled, every plan has renewal protection.
If someone is looking for control over their health care and insurance plan, this may be the right product for you.
Additionally, this is a perfect fit for someone who has a commercial health plan through the Healthcare Marketplace or KyNect and wants help covering out of pocket costs.
What does an indemnity insurance plan mean?
You choose where to receive care, and how the insurance company pays the claim. The policy holder chooses whether they want the money paid to the provider or themselves. The full benefit amount is paid regardless of what is owed to the doctor or facility. If the balance with the provider is paid, the insurance company will send the remaining payment directly to the policy holder, that money belongs to the policy holder. (We always suggest people set any remaining money aside and use it for future medical, dental, or vision expenses.) An Indemnity plan is first-dollar coverage, that can be used as the policy holder primary insurance plan or as a secondary insurance plan.
What is an example of indemnity in insurance?
A person had a doctor’s visit for a follow up and labs. Office visit charge; The provider bills $200 and the patient responsibility is $75. Lab charge; The lab facility bills $350 for 6 labs, the patient responsibility is $167. The listed office visit benefit amount is $175 per day and the lab benefit is $50 per lab. Total amount paid by insurance is $475. The plan pays $75 to the provider, $175 to the lab facility, and the remaining $225 is paid directly to the policy holder. (Member/patient)
Questions about Health Insurance?
In this scenario, many people think of indemnity insurance as “backup coverage” but it’s often a smart addition to your core health insurance plan. Whether you’re facing high deductibles under your ACA-compliant health insurance or want peace of mind during hospital stays, indemnity coverage fills the financial gaps that traditional insurance might leave behind.
Example: You have a ACA compliant plan with a HMO network for doctors and hospitals. You’re diagnosed with gastrointestinal issues, but the doctors in Ky have exhausted all their options. They can’t figure out what’s wrong and send you to the Cleveland Clinic for diagnostic testing and treatment. Your ACA compliant health plan doesn’t offer a network outside Ky. In this instance, your indemnity plan would become your primary insurance. You would use the national PPO network attached to the plan. The diagnostic testing and treatment would be filed through the Indemnity insurance. Without the indemnity plan in place, the person would have to pay, with no coverage, for services outside the state. Having both is the only way to insure someone has the freedom to seek healthcare, wherever they need to go.
Is indemnity insurance worth it?
That depends on your health, lifestyle, and financial goals. If you’re someone who wants added flexibility in choosing providers or needs protection from rising out-of-pocket costs, it’s an option worth considering.
What is the purpose of an indemnity?
The purpose is to financially restore the insured party after a covered event. It’s about making you whole again, helping you pay medical bills, cover living expenses, or recoup losses tied to professional liability.
What is hospital indemnity insurance?
Hospital indemnity insurance provides first-dollar coverage when you’re admitted to a hospital for a covered reason. This benefit can help pay for coinsurance, deductibles, transportation, or non-medical costs like childcare or lost wages.
How much does hospital indemnity insurance cost?
Premiums vary depending on age and chosen benefits, but many plans start as low as $50 to $200 per month. As a Louisville-based insurance broker, we help you compare rates and identify the most affordable plans from trusted insurance companies.
Why is it important to have Indemnity in place before you need it?
Indemnity insurance is underwritten. They do not have to approve and enroll every applicant. The benefit of underwritten plans; The rates are competitive and are NOT often hit by “annual inflationary rate increases.” The underwriters approval process is based on the applicants current and previous health history. This is why it is important to have the insurance in place first. If a person waits until they need it, the applicant could be turned down, depending on the diagnosis and treatment. Once enrolled the plan renews each year and “cannot” be canceled or changed without the “policy holders”consent.
The ACA compliant plans are not like this, they guaranteed to people, they are high risk insurance plans, therefore we can add or change a full priced, ACA plan, each year, because they essentially “give them away” to people. The rates are higher. Additionally, they often have a restricted network for healthcare providers and facilities. The carriers use HMO networks to control the loss ratio because ACA compliant plans have to take applicants regardless of their health history.
People don’t understand that insurance is one big pool of risk. The carrier has to have a certain percentage, by law, in reserves to cover unexpected claims. A person can pick up the coverage and a month later they find out they have cancer. That person only paid in one month’s premium, where does the money come from, reserves. Insurance companies are regulated on how much of every dollar has to be set aside for claims and what percentage is set aside for administrative costs. Providers, hospitals, and pharmaceutical companies, are not regulated by the state or government regarding how much they charge or where your money goes after they receive it.
What is fixed benefit health insurance?
This is another term used for indemnity health insurance. It pays a predetermined amount for specific medical services, regardless of the provider’s billed amount. It can be used to supplement a high-deductible medical plan or as primary insurance for individuals.
What about supplemental insurance plans?
We offer a full range of supplemental policies, including critical illness insurance, accidental injury coverage, and hospital indemnity plans. Supplemental is another term for Indemnity Insurance. The term is used most often when indemnity is used as “secondary coverage.”
Want To Switch?
Consider switching to indemnity insurance if:
That said, indemnity insurance is not for you if you mind paying slightly higher health insurance costs or deductibles. You may have to pay higher deductibles because indemnity plans don’t come with a list of healthcare specialists or facilities vetted for costs. As such, some of the doctors or hospitals you visit may charge higher than the UCR rate.
Are They Better?
Health Maintenance Organization (HMO), Preferred Provider Organization (PPO), and indemnity health insurance plans can all offer sufficient coverage. But unlike HMO and PPO plans, indemnity plans don’t limit your care to listed health care specialists or facilities.
Because indemnity insurance doesn’t limit you to a few hospitals, you can get the best available medical care in Kentucky. However, if your priority is getting medical care at a predictable rate, you are better off with an HMO or PPO plan. That’s because HMO and PPO plans come with an approved list of medical providers that charge only according to the standard UCR rate.
Want To Switch?
We know that no two households or businesses have the same insurance needs. That’s why we provide personalized service to Louisville families, self-employed professionals, and companies seeking added health benefits or liability insurance.
As your indemnity insurance broker, we work with a variety of carriers, including well-known names like the Indemnity Insurance Company of North America and other national providers. We’ll compare monthly premiums, coverage limits, and policy exclusions to help you find the plan that delivers the most value.
Our clients rely on us for:
Whether you’re shopping for insurance in Louisville, Indiana, or Ohio, our expertise spans local and regional plans that match your needs and budget. You can carry the plans with you, no matter where you may end up.
What are the Benefits?
What are the benefits of having indemnity insurance?
Freedom to choose providers without worrying about network restrictions
Cash benefits to use however you need
Support for out-of-pocket expenses, like copays and deductibles
Flexible use for both medical and non-medical costs
Supplemental security for those with high-deductible or catastrophic plans
How does indemnity insurance differ from other types of insurance?
Traditional commercial health plans require the member to pay out of their pocket first. They require prior authorization approval before paying claims. They require network participation in order for the full benefit to pay. The paid benefit amount has to be used to pay the doctor or hospital.
Indemnity insurance does not require the member to pay out of their pocket first. It does not require prior authorization before claims are paid. Plans pay the full listed benefit in or out of network. The plan gives the policy holder flexibility to have benefits paid directly to them or the provider. The benefits paid can be used for medical expenses or living expenses. The benefit amount paid to the member, is not regulated or considered income. This gives you greater control over how and where you spend your benefits.
Can indemnity insurance be used for any type of professional service?
Professional indemnity insurance is widely used across fields consulting, financial advising, healthcare, and more. However, policy language and exclusions vary, so it’s important to work with a licensed insurance agent to ensure proper coverage.
Can indemnity insurance be used for dental coverage?
Yes. Many providers offer dental indemnity plans that reimburse you for exams, fillings, or orthodontic services, often with fewer restrictions than standard dental networks.
Get A Quote Today
Located near Louisville and serving communities across Kentucky, we bring a local touch to complex insurance topics. Our independent status means we’re not tied to one company instead, we search the market for the best combination of price and protection.
We partner with trusted carriers who understand indemnity insurance works best when it aligns with your larger financial picture. Whether you’re a retiree looking to supplement your Medicare plan or a self-employed business owner building your first portfolio, we’ll guide you toward a solution that makes sense.
