subject: Types of Health Insurance [print this page] Types of Health Insurance
The types of Health insurance coverage can be divided in to two separate categories and these will outlined. The two types are Traditional care and Managed care and within these there are four types of insurance plans. Traditional plans which are also known as fee for service plans; Preferred Provider Organisations; Point of service plans; Health Maintenance Organisations.
None of these Health care plans are better than the other, it just a matter of preference.
Traditional Health Insurance
Back in time people had to pay something for their medical expenses then of which their insurance provider would pay the rest of the bill. This was the most common coverage plan used and insurance companies opted for this because it cut down on their costs. A certain percentage is calculated and it will help determine the amount you will pay when making a claim.
The Fee-for-service plan was designed in such a way that your insurance provider had no say in when and which doctor you visited, the company could not decided whether or not the visit was necessary. You however needed clearance to have a major procedure done on you such as an operation in which you had to pay something between $200 and $2000 before your insurer could pay the rest.
Managed Care
Managed care involves the arrangement made between the insurance provider and a selected number of health care service providers. Policy holders are given incentives on which provider to choose within the network. Service providers are usually chosen through formal procedures to assure quality and professionalism.
Preferred Provider Organisations
Preferred Private Organisations are those which make arrangements for low fees with a number of selected health care providers. Policy holders are give incentives to stay with certain health providers. For example if you visit a doctor who is with the selected group of health care providers you will pay a fee of $10, but should you get your own health provider you will have to pay the whole fee then give your insurer the invoice of which they may pay only 70%. As long as the provider is in the network then you pay less.
Point of Service
Point of Service plans are quite similar to Preferred Provider Organisations in that your insurer will give you a network of physicians for you to choose a primary care physician from. The routine will be the same as in PPOs and you will pay much less for selecting a physician from the network.
Health Maintenance Organisations
Health Maintenance Organisations are really the ideal way to go for those that cannot afford expensive plans. They are low cost and you may not even make a payment for your claim.
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