Final answer:
Indemnity Plans offer the flexibility to choose any healthcare provider but typically involve higher out-of-pocket costs, especially for out-of-network services.
Step-by-step explanation:
It is false that Indemnity Plans only offer the Out-of-Network (OON) tier of coverage. Indemnity health insurance plans, also known as "fee-for-service" plans, typically allow policyholders to choose any healthcare provider without considering network restrictions. This means that policyholders have the freedom to visit both in-network (IN) and out-of-network (OON) providers. However, visiting an OON provider may result in higher out-of-pocket costs compared to in-network options, since insurance providers often negotiate lower rates with in-network providers.
Indemnity plans are known for their flexibility but may be associated with higher premium and co-payment rates. They also often include a deductible that must be met before the insurance company begins to pay out. Importantly, indemnity plans generally reimburse a portion of the costs for services provided by any healthcare provider, rather than the full cost, leaving the policyholder responsible for the balance.