Are you aware of your options out there for medical insurance plans? Unfortunately, many people needing insurance are not aware of the varieties of plans out there and will ultimately end up overpaying for shoddy care. With a little bit of research, you will be able to hone down exactly what you need out of a plan.
There are many types of medical insurance plans out there, from group coverage plans you can find through an employer to managed care plans for the sick and elderly. Of course, not every type of plan is a good fit for every individual. You should purchase insurance based on your particular set of needs – nothing more, nothing less.
Whether you are on the hunt for the cheapest health insurance possible or the strongest family medical insurance you can find, it is of the utmost importance that you shop for what you need. Before you shop around, however, you need to know about some of the types of insurance available to you.
Different Types of Medical Insurance
Indemnity Plans
Indemnity plans are most popular with individuals seeking out their own insurance. Group insurance plans, or insurance plans provided through a union, do not usually have the options of indemnity plans. Of course, indemnity plans are usually more expensive, but they allow you more freedoms, such as choosing doctors and procedures and hospitals. These types of plans will also only pay for costs after receiving a bill directly.
On a broad scale, indemnity plans pay around 80% of all medical bills they consider to be “usual and customary,” meaning they’re not paying for elective procedures in most cases.
Managed Care Plans
Managed care insurance plans are undoubtedly the most popular and include PPO and HMO services, as well as POS plans.
PPO stands for Preferred Provider Organization, and this type of plan combines elements of an indemnity plan and a managed care plan. You get to choose your doctors and other aspects of care, but you have to choose them from a provided list. You have the freedom to go outside of the company’s network, but you will have to pay the deductible and coinsurance charges, which are usually a lot higher.
HMO, short for Health Maintenance Organization, is the most popular plan with large corporations like unions. Although you will have to pay a small copayment, there are no deductible charges here. There also isn’t a lot of freedom, as you have to usually see the doctors the insurance company refers you to.
POS plans, meaning Point-of-Service, are basically HMO plans with an extended network and an out-of-network service.
These are just a few of the different types of plans you will find when looking for insurance. Make sure you research each individual plan fully before deciding on which best suits you and/or your family.