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An Indemnity or Traditional Plan gives more liberty for you to select which physicians or medical institutions to use, however, it may entail bigger out-of-pocket expenses and additional paperwork for you. In an Indemnity plan, you can consult the physicians or medical specialist you like without need of referrals. Even if you want to get your primary care from only one physician, your insurance provider will not obligate you to select a primary care physician (PCP). But this will mean more expense for you. If you have this kind of liberty, you will have to pay a yearly deductible prior to your insurance provider paying on your claims. After paying your deductible, your insurance provider will now pay your claims at a set percentage (as provided for in your policy) of the “usual, customary and reasonable (UCR) rate” for the service. The UCR rate is the usual amount doctors and other health professionals charge in your area for a particular service or procedure done.
