The Costs of Health Insurance

Today we will premiums, indemnities, deductibles and income protection.

You may be wondering, what is an indemnity? Indemnities were created in the 60s and 70s. Basically, you pay for the service upfront and submit a bill for reimbursement.

Later, in the 80s and 90s, service benefit plans were created by the American Hospital Association to reimburse providers directly. In an indemnity, you pay the out of pocket cost and receive a reimbursement. Service benefit plans later became the norm.

What is a Premium?
Health insurance protects us from financial strain due to medical costs. A premium is like a gym membership.

You can listen to the full episode above.