How fixed indemnity insurance can help you beat rising healthcare costs

Learn how this type of plan can help with medical bills and other expenses.

Your wallet may be dealing with a lot these days. That could include higher prices for food and other things. And it may also be experiencing sticker shock at the doctor’s office.

According to health policy organization KFF, U.S. healthcare costs are generally rising faster than inflation. That includes out-of-pocket expenses, like copayments, coinsurance and deductibles.

You’re probably wondering if there’s anything you can do about it. One option is fixed benefit health insurance. (You might also see it called “fixed indemnity insurance” or “hospital and doctor insurance.”) That’s a type of supplemental insurance that can help you pay for certain medical expenses.

Below, learn how fixed indemnity insurance can help you beat rising healthcare costs.

A fixed benefit health insurance plan is one way to offset doctor’s office and hospital costs. Call a licensed insurance agent at (800) 827-9990 to talk about available plans, or browse your options online.

What is fixed benefit health insurance?

Fixed benefit health insurance pays a preset or “fixed” benefit amount for certain covered medical services. These could include things like:

• Doctor visits
• Emergency room visits
• Hospital stays
• Labs or X-rays
• Surgeries

That’s no matter what those services cost, or whether your traditional health insurance plan covers them. This type of insurance is designed to help cover out-of-pocket expenses. Those include things like:

• Copays/coinsurance
• Deductibles
• Other healthcare costs beyond what your primary insurance covers

It’s important to know that it’s a type of supplemental insurance. You pay extra for supplemental insurance (on top of your existing health insurance plan), and it doesn’t replace a traditional health insurance plan. If you were to spend time in the hospital or undergo surgery without health insurance, things could get expensive quickly.

Have questions about fixed benefit health insurance? Call a licensed insurance agent at (800) 827-9990 to talk about available plans, or browse your options online today.

How can fixed benefit health insurance help with rising healthcare costs?

Here are some of the ways fixed benefit health insurance can help beat rising healthcare costs:

1. It can help with out-of-pocket expenses. Since fixed indemnity insurance can help cover costs like deductibles, it can be particularly useful if you have a High-Deductible Health Plan (HDHP). That’s a type of health insurance plan that has a higher deductible than the average plan. That means you’ll have to pay more out of pocket before the insurance company starts to pay for covered services.
2. It provides flexibility with healthcare providers. Unlike traditional health insurance, fixed indemnity insurance allows you to choose any healthcare provider you want. It doesn’t make you stick to a specific network. This could help if you want to see a particular doctor or specialist. But it’s important to know that if you choose providers in your traditional health plan’s network, they could be less expensive.
3. It has year-round availability. Fixed indemnity insurance plans can be bought at any time of the year. That’s not always the case with some health insurance plans. Typically, you have a limited Open Enrollment Period to buy them. With fixed indemnity plans, this means you can get coverage when you need it most.
4. It can be beneficial for people who are self-employed. If you’re self-employed or run your own business, the preset benefit from a fixed indemnity insurance plan can help you maintain cash flow. That could be during times when you can’t work due to illness or injury. It can provide help to make sure your bills and other expenses are covered.

How do I get fixed benefit health insurance?

Many insurance companies offer fixed benefit health insurance plans. But it’s worth noting that the preset benefit amounts and what types of medical services are covered can vary from plan to plan. They can even change based on where you live.

It’s also important to understand that fixed benefit health insurance doesn’t provide coverage for essential health benefits, like ACA plans do. Fixed benefit health insurance plans could deny you coverage if you have a pre-existing condition. It’s important to read the plan brochure carefully before buying a plan. You can also call a licensed insurance agent at (800) 827-9990 to discuss it further, or browse your options online.

For informational purposes only. This information is compiled by HealthMarkets Insurance Agency and does not diagnose problems or recommend specific treatment. Services and medical technologies referenced herein may not be covered under your plan. Please consult directly with your primary care physician if you need medical advice.