What is private indemnity insurance?

Private indemnity or "fee for service" insurance can be obtained by individuals on their own, or through groups, such as employers or associations, and allows some level of choice of health care provider by the insured. When private indemnity insurance offers a more limited choice of providers, is it is typically referred to as Preferred Provider Plan, as your choice may be restricted to health care providers who are members of the sponsoring insurer's Preferred Provider Organization or PPO, or receive a reduced level of reimbursement when you see a provider who is not a member of the PPO.