What are the different types of health plans available?
There are two types of health insurance to choose from. The first type is indemnity plans. These plans are also referred to as “traditional indemnity” or “fee-for-service plans.” The second type is managed care plans. With an indemnity plan, you can visit the doctors of your choice and pay for services at the time of the visit. The amount of coverage is a predetermined benefit level of covered medical expenses, based on the deductible and co-insurance amounts. With this type of plan, members are typically responsible for filling out forms and sending them to the insurer and keeping track of all medical expenses. Managed care health insurance plans include HMO, PPO and POS. A managed care plan offers you certain incentives for using providers that are contracted with the insurer. While managed care benefits will vary from one plan to the next, they all encourage members to use their pre-approved network of doctors and facilities, as well as limit coverage of any treatment sought outside
