Your Type of Health Insurance

Health insurance is a type of insurance policy which covers losses that results from illness or other bodily injuries. Typically, it covers the costs for medicine, visits to the physician or the emergency room, hospital confinement, and other medical expenses.

Health insurance policies vary according to coverage, the amount of deductible and/or cost of co-payment, inclusions and exclusions, and the options for health care that are available to the insured. There are two types of health care plans: the indemnity health plan and the managed care plan.

Over time, the differences of indemnity and managed care have begun to become vague and hazy because of competition in the insurance business. Other indemnity plans are now integrating managed care-type options that are suitable to the clients’ needs. Some managed care plans are also including stipulations that give the policyholder’s the choice of taking out additional coverage from other providers that can satisfy their preferences.

Indemnity plans are also known as traditional or fee-for-service insurance policies. It is a more flexible plan in that it allows the policyholders to choose any doctor or hospital that they want. In this type of health plan, the insured pays an annual deductible plus a percentage of the medical bill in the event that the plan is used. It offers a wide freedom to choose doctors and hospitals but it is usually the most expensive option.

The managed care plan, on the hand, comes in three kinds: the Preferred Provider Organization (PPO), Health Maintenance Organization (HMO), and Point-of-Service (POS). These insurance plans do not have that much difference in their coverage. However, make sure you inquire about them first with your insurance agent to get more detailed information before you avail any of them.

Whatever type you have, you can be assured that you have security in case you encounter any health issues. Remember that you have protection from expensive health care costs if you have a health insurance plan.

Filed Under: Health Insurance Policies

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