Health Insurance Glossary – I Terms
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
I
Indemnity Plan
A health insurance plan that reimburses policyholders for covered health care costs, irrespective of what health care provider is used. The insurer is normally required to pay a fixed percentage (say 80%) of the usual, customary and reasonable health care costs for the service after a deductible has been met, leaving the individual to pay 20% plus any amount considered in excess of the usual, customary and reasonable rate.
Indemnity plans were very common prior to the advent of HMOs, IPAs and PPOs, and provide individuals with considerable freedom to choose their own health care providers. Because Indemnity plans to not restrict or encourage individuals to use an In-Network Provider, the premiums are likely to be higher than for other health plans.
An Indemnity plan may also require an individual to pay the full amount for services up-front and then submit a claim to the insurance company for reimbursement. As a result this type of plan often requires and individual to complete more paperwork.
Also known as a Fee-for-Service Plan.
Independent Agent
A representative of multiple insurance companies who is licensed to sell insurance policies on behalf of those companies. An independent agent is usually paid on commission. See also, Agent.
Independent Practice Association (IPA)
An independent Practice Association is similar to an HMO, except care is provided from a physician's own office, rather than in an HMO facility.
Individual Health Insurance
Health insurance that provides coverage for an individual, as opposed to a group of people. Normally obtained by an individual directly from an insurance company, rather than through an employer. Dependents may also be covered under an individual health insurance plan.
Inflation
A rise in the general level of prices of goods and services rises over time.
Inflation Rider
An amendment or modification to an insurance policy to protect against inflation by increasing the amount of coverage by an amount equivalent to the level of inflation.
In-Network Provider
A health care professional, hospital, or facility that belongs to a network that has an agreement with an insurer to discount or limit the price of certain medical services. The In-Network Provider benefits from this arrangement by receiving patient referrals from the insurer.
A health insurance plan may provide increased coverage for services provided by an In-Network Provider, or may only provide coverage for services provided by an In-Network Provider, therefore an individual may benefit from using an In-Network Provider.
See also Out-of-Network Provider.
In-patient Care
Care provided to a patient requiring the patient to stay one or more nights in a hospital or other medical facility.
Insurable Risk
A risk for which it is relatively easy to obtain insurance coverage.
Insurability
The acceptability to an insurer of an individual applicant for insurance.
The factors that determine if an applicant will be accepted for insurance include the applicant's age, current health status, preexisting conditions, medical history, and lifestyle habits such as whether or not the applicant is a smoker, etc.
Insurance Premium
The price of the insurance policy.
Insured
An individual who is covered by an insurance policy.
