Indemnity plans pay a predetermined (fixed) amount for services covered by the plan. Typically, you pay the hospital bill and the insurance company reimburses you direclty. There are typically no network restrictions so you can choose your doctor or hospital. When paired with a major medical plan, this coverage can provide some added financial protection. It is also a guaranteed issue. Also referred to as a "fee-for-service" plan or "fixed indemnity" plan.