Final answer:
Indemnity Insurance is a program that guarantees indemnification of an insured party against a specific loss, offering freedom to choose any healthcare provider, unlike HMOs or PPOs which have network restrictions.
Step-by-step explanation:
A program that provides benefits without a contract, guaranteeing the indemnification of an insured party against a specific loss, is considered Indemnity Insurance. Unlike a Health Maintenance Organization (HMO) or a Preferred Provider Organization (PPO), which are types of managed care plans, Indemnity Insurance allows the insured to seek health services from any provider, and the insurance company will pay a set portion of the total charges. The insured typically pays a deductible before benefits from the insurance company are payable.
In contrast, an HMO covers care provided by doctors and hospitals inside its network, and providers are paid a fixed fee per patient. A Fee-for-Service (FFS) plan is where providers are paid for each service performed, but this is not synonymous with guaranteeing indemnification without a contract.