Affordable Care Act
A fixed-indemnity insurance plan is a type of supplemental health plan that gives you a fixed cash benefit payout in case you experience specific illnesses or injuries covered by your policy.
For some consumers, a fixed-indemnity insurance plan is a helpful add-on to a regular health insurance plan, as it helps cover out-of-pocket costs for medical expenses they expect to incur during the year.
Understanding fixed-indemnity insurance
Prior to choosing a fixed-indemnity insurance plan, it’s important you understand what such a health plan entails.
First, be aware that fixed-indemnity insurance isn’t the same as regular health insurance or major medical health insurance. In general, a fixed-indemnity insurance plan does not conform to the Affordable Care Act (ACA or “Obamacare”), because it doesn’t provide the minimum essential coverage required by the ACA. This means that, until 2019, you may still be subject to an Obamacare tax penalty if you purchase a fixed-indemnity insurance plan even if you pair fixed-indemnity insurance with other supplemental medical insurance products to make a medical insurance package.
In addition, fixed-indemnity plans may only cover a limited set of illnesses, injuries, drugs, and/or medical procedures, and sometimes do not cover hospital costs at all, so check your policy brochure carefully before you select a plan.
Fixed-indemnity insurance plans are not always guaranteed issue, so you may still have to go through the medical underwriting process when you purchase such a plan.
If major medical health insurance is not an option due to your particular health and financial needs, a fixed-benefit indemnity plan may ultimately be the best solution for you. However, remember that it’s always a good idea to enroll in a major medical health insurance plan, and you can do this during the annual Open Enrollment Period (OEP) or during a Special Enrollment Period (SEP) if you qualify.
To help find the right health plan for you, enter your zip code where requested on this page to see a quote or visit ehealth.com to compare health insurance plans.