Need Insurance? What about a Fixed Indemnity Plan?

Need Insurance? What about a Fixed Indemnity Plan?

Have you been hearing individuals talk about fixed indemnity insurance plans? Don’t pass up on these rewarding plans, We know the name can be a little confusing. We want to take the time to help you explain the plan in detail, with that being said we would like to help you understand how fixed indemnity works and if it will work for you and your family.

Fixed indemnity Insurance plans pay a planned, or fixed amount for particular covered health service depending on the level of coverage that you select.  A fixed indemnity plan is a type of supplemental health plan that gives you a secure cash benefit, in the case you experience particular illnesses or injuries covered by your plan.  For some customers, a fixed-indemnity insurance policy is beneficial to add-on to a regular health insurance plan. This helps individuals cover-out-of pocket medical expenses they anticipate to incur during the year.  However in some cases individuals opt for the fixed indemnity plan as stand alone coverage in the event they are healthy individuals without the need for a more traditional major medical plan.

Understanding How Fixed Indemnity Works

Before choosing a fixed-indemnity health insurance plan, its critical that you understand what such insurance plan involves.

All consumers need to be aware that fixed-indemnity plans are not the same as regular insurance and major medical insurance plans.  Generally, a fixed-indemnity does not comply with the ACA (Obamacare) because it doesn’t supply the minimum essential coverage required by the Affordable Care Act.  This means going into 2019, you still might have to pay the Obamacare Tax Penalty. Even if you buy a fixed-indemnity health plan and pair it with another supplemental medical insurance to try and make a insurance package, you can still be subject to pay the penalty.

Your fixed-indemnity plan can have very limited coverage and may only cover so many illnesses, injuries, drugs, and/or medical procedures, and sometimes doesn’t cover your hospital costs at all, so when setting up your policy make sure you read and check each plan before proceeding in purchasing the policy. When looking at fixed-indemnity plans you need to be aware that plans are not always guaranteed issue, this means you will still have to go through a medical underwriting process when you are going to purchase such plan.

The best way to know if a plan is going to work for you is to contact a licensed agent and inquire.  If you have questions or concerns about the level of coverage and whether or not this is going to be a good fit for you or your family reach out and we will have an agent contact you as soon as possible.

If you are unable to get a major medical health insurance plan due to a health condition or financial issue, a Fixed-Indemnity plan may potentially be the best fit for your needs. Although, remember that it is  always a good idea to enroll in a major medical insurance policy, and you can do so during Open Enrollment Period(OEP) or if you do qualify for a Special Enrollment Period(SEP) which applies to the following:

• Marriage or Divorce
• The birth or adoption of a child
• The loss of employer-based health insurance coverage
• Moving to a new city outside your old plan’s coverage area
• Changes in income that may make you eligible for Obamacare Subsidies

These Special Enrollment Periods take place from November 1st through December 15th. Keep in mind if your state runs its own Marketplace, your enrollment period my be different. Always double check to see if your state has made it so that you have a longer time to enroll.

You can check enrollment status updates at Healthcare.gov.