There are many different types of Health insurance plans out there. Picking
the right one for yourself can be troublesome in the beginning, especially if
you don't know what you are looking for. You might have trouble deciding which
one would be better for you.
Health insurance is divided into two large
categories-indemnity and managed care plans. Indemnity plans, also commonly
called reimbursement plans, will reimburse your medical expenses up to a certain
limit. Under the Reimbursement plan, the insurer pays a percentage of the total
charges, regardless of how much the charges are. With the indemnity plan, the
insurer will pay a specified amount every day for a specified number of days.
The amount reimbursed does not rely on the cost of medical care, but what you
are reimbursed will never exceed your expenses.
The other popular type of
health insurance plans is managed care plans. The three types of policies
categorized as managed care plans are HMOs, POSs, and PPOs. This type of
insurance is more popular than the indemnity plan, as they offer more
flexibility. With these types of options you either pay a monthly fee no matter
how many times you see a doctor, or pay a co-payment but no monthly fee. With
managed care plans, you are given options of care. The plan you choose and the
amount of money you wish to pay determines how big of a network of doctors and
specialists you can see and still be covered under the plan. Some managed car
plans (most often PPOs) offer sponsorship programs from a network of hospitals
and medical services. You can often get this kind of plan through your
employer.
Managed healthcare plans are better for the average person due
to the fact that they are more cost effective. While indemnity plans may give
you a lot more freedom in cost, you will have to use the healthcare provider
that the insurer chooses. If you have a specific disability, this can present
itself as a problem. In the long run, a managed care plan will save you money,
especially if emergencies arise when you are out of town. These types of plans
also are more flexible in policy. Before you purchase any kind of health
insurance, be sure to research the many options available for you and your
family to ensure you receive the best coverage possible for the lowest monthly
premium or deductible.