What is fixed benefit (fixed indemnity)?
A predetermined insurance benefit amount paid on a per-period or per-incident basis, regardless of the total charges incurred for eligible medical expenses from your provider.[footnotes]fixed-indemnity health insurance definition. (2016). healthinsurance.org. Retrieved 5 April 2019, from https://www.healthinsurance.org/glossary/fixed-indemnity-health-insurance/[/footnotes]
For example, your fixed indemnity policy may pay $500 per day for hospital room and board (even though the charge is really $1,000 per day) and cover one doctor’s visit while hospitalized at a rate of $100 per visit (even though the charge is really $200).
If you are hospitalized for five days and see the doctor one time each day, your fixed indemnity policy payment amount would likely be $3,000 even though the total medical expenses incurred was $6,000.
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