What does the term “indemnity plans” refer to in dental insurance?

The term “indemnity plans” in dental insurance refers to a type of plan that typically allows policyholders more freedom in choosing their providers and treatments. This is characterized by scheduled or basic plans and comprehensive plans, where the insurance company pays a set fee for various dental services rather than paying directly for specific treatments.

Indemnity plans usually reimburse a portion of the costs once the insured receives care, requiring the policyholder to pay out-of-pocket and then seek reimbursement. This flexibility allows patients to visit any dentist without the need for referrals, emphasizing the plan's broad coverage and the insurer's predetermined schedule of benefits.

Other options are less representative of indemnity plans; for example, plans with fixed annual limits may restrict coverage, and those requiring referrals for services typically involve more managed care approaches, which differ from the independence and payment structure of indemnity plans.