Indemnity-type insurance plans, exemplified by Blue Cross and Blue Shield, offer flexible coverage with cost reimbursement options, contrasting with fixed copay amounts in other insurance models.
Blue Cross and Blue Shield health insurance plans are generally well-known examples of the early years of indemnity-type insurance plans. These plans involve paying a fee for coverage and then a portion of the costs, rather than a set amount like a copay. They provide more flexibility in choosing healthcare providers. Indemnity plans are a traditional model of health insurance.
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