What Are The Different Types Of Health Insurance?
There are different types of health plans, but they can be broken down into two main classes: Fee-For-Service and Managed Care. Fee-For-Service plans are also called traditional health insurance. Under these plans you typically pay for health services directly and are then reimbursed by the insurance provider for part or all of that cost. Under Managed Care plans, a group of doctors and hospitals agree to work with an insurance plan at lower rate, negotiated by the managed care organization. The health plan will pay these ‘In-Network’ doctors and hospitals directly for the majority of the cost of the health care services. Types of managed care plan models include Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs) and Point-of-Service plans (POSs). Basic Health Insurance Terms Here are some common health insurance terms you should know: • Premium. This is a monthly fee for your insurance coverage. The amount you pay per month will depend on the amount of co
