If you are choosing between indemnity and managed care plans, remember that they may differ in several important ways, including: • How you access services. • How you obtain specialty care. • How much and sometimes how you pay for care. Despite these differences, indemnity and managed care plans share some features. For example, both types of plans cover a wide array of medical, surgical, and hospital services. Most plans offer some coverage for prescription drugs. Some plans also have at least partial coverage for dentists and other providers. The major difference between indemnity (non- Remember, network based coverage) and managed care plans vary in plans (network-based coverage) concerns what they pay. No choice of doctors, hospitals, and other plan will pay 100 providers; out-of-pocket costs for covered percent of your medical services; and how bills are paid. expenses, but some plans will pay more Be sure to check on the physicians and hospitals than others. that are included in the plan. Indemnity Insurance This type of coverage offers more flexibility in choosing doctors and hospitals. Usually, you can choose any doctor you wish, and you can change doctors at any time. Although you usually will not need a referral to see a specialist or go for x-rays or tests, you may need paperwork, such as your medical records, from your primary care physician. Be sure to ask your doctor if there’s any paperwork that you will need to take with you. If you have indemnity insurance, your plan only pays part of your medical bills. You are responsible for the rest. Your out-of-pocket costs are likely to be higher for certain services than with some managed care plans. Usually, you will need to spend a certain amount each year before your plan begins to pay benefits. This amount is called a deductible. 6