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Term Details - CMM Plan

Comprehensive Major Medical Plan. A CMM Plan -- also known as an “indemnity” plan -- is a traditional major medical insurance plan that pays a percentage of the provider’s charges. Typically, indemnity plans pay providers on a fee-for-service basis. Many insurers, for example, will pay providers 80% of the usual, customary and reasonable fees for a comprehensive array of services. A PPO (a Preferred Provider Organization) is a variation on the traditional indemnity plan, which offers participants favorable rates if they use a specific network of providers.

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