What type of medical insurance reimburses a policyholder for medical services based on its schedule of benefits?

Indemnity plans are designed to reimburse policyholders for medical services according to a predetermined schedule of benefits. Under this type of insurance, the insurer generally pays a percentage of the costs of the covered services after the insured has paid a deductible. This allows for more flexibility in choosing healthcare providers, as there are usually no restrictions on seeing specialists or going to different hospitals, unlike some managed care options.

In contrast, Health Maintenance Organizations (HMOs) typically require members to use a network of doctors and hospitals, often needing referrals for specialized care. Preferred Provider Organizations (PPOs) also involve a network of providers but offer some coverage for services outside the network, albeit at a higher cost. Medicare Advantage Plans incorporate elements from various types of insurance (often HMO-like structures) and typically include extra benefits beyond standard Medicare, like vision or dental coverage.

Therefore, indemnity plans are the only type among the options listed that specifically operates on the basis of a schedule of benefits for reimbursement.