Types Of Health Insurance

When it comes to insurance, you have a number of options to choose from depending on your needs and preferences. Knowing all the options will enable you choose an insurance plan that will cater to your needs and also be within your budget.

The two main categories of the insurance plans are Traditional Indemnity Plans and Managed Care Plans.

Indemnity plans, also known as Traditional Health Insurance or Fee-for-Service, were very popular years ago. An Indemnity plan allows you to decide which doctor should treat you and which hospital you want to be treated at. This feature is appealing as most people feel more at home with doctors and hospitals they are used to.

For Managed Care, there are three types of individual health insurance plans:

• POS (Point-of-Service). Here, you are given a list of doctors and you get to pick your Primary Care Physician. You can choose the hospital and doctors that you prefer.

• HMO (Health Maintenance Organizations). This is the least expensive plan. Using this plan limits your options to the terms and offers of the company. You cannot pick a hospital or doctor outside the HMO network.

• PPO (Preferred Provider Organizations). This Managed Care plan has characteristics of the Indemnity plan. Its charges vary depending on the doctor and hospital that you choose. You will pay higher if you choose a doctor who is not in the PPO’s network, and lower of he is from the network.

Knowing the characteristics of the different health plans available will enable you select one that is right for you.