What types of health insurance policies are available?
In recent years, managed care plans have replaced the typical indemnity, or fee-for-service plans. Managed care plans include Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPO’s), and Point-of-Service (POS) plans. Managed care plans require insureds to access health care through a network of providers. The primary care physician refers patients to specialists and other providers in the network. In turn, premiums are somewhat reduced and/or benefits increased. Traditional indemnity plans allow insureds the freedom to select and use providers of their choice. Services are not restricted to the network’s territory or list of participating providers.
