Which type of health plan operates on a fee-for-service basis with fewer restrictions?

Indemnity plans are designed to operate on a fee-for-service basis, allowing policyholders greater flexibility in choosing their healthcare providers. With this type of plan, patients can see any doctor or specialist without needing a referral, and they are reimbursed a portion of the costs for the services provided. This structure means that there are fewer restrictions compared to managed care models, which often require members to stay within a network of providers or obtain referrals to see specialists.

The lack of stringent network limitations and the ability to seek care from a wider range of providers characterize indemnity plans, making them appealing to individuals who prioritize choice and flexibility in their healthcare decisions. This freedom, however, often comes with higher out-of-pocket costs and may require patients to manage their claims more actively compared to other health plans.