What were Indemnity Plans primarily designed to cover in the beginning?

Indemnity plans, historically, were primarily designed to cover catastrophic losses from inpatient hospital expenses. These plans provide a higher level of financial protection in situations where patients face significant costs resulting from serious healthcare events that require hospitalization. The emphasis was on covering expenses that could arise from lengthy hospital stays, surgeries, and other major medical procedures, providing a safety net against substantial healthcare bills.

The core objective of indemnity plans is to ensure that members can access necessary care without facing overwhelming financial burdens in the event of serious health issues. This focus on major medical expenses distinguishes indemnity plans from other types of health insurance that may cater to outpatient care or preventive services, which typically were not the primary concern when these plans were first developed.