Health insurance is divided into three basic types namely: government- sponsored health insurance, indemnity plans and managed care plans. These three types have different attractive benefits with advantages and disadvantages as regards your ideal health insurance.
The government- sponsored health insurance comprises of different forms but the common ones include: military health care, Medicare, Indian health services, state children health insurance program (SCHIP), Medicaid and state specific plans. This type of plan is ideal for seniors, people who cannot pay for their own health insurance and retirees. If you finally decide to choose this particular plan, it is wise to go through all the listed forms above so you don't get any surprises.
Another name for the indemnity plan is fee- for- service plan. In this plan, customers pay immediately after treatment or as you are leaving the hospital. At the end of the day, you are given either full or partial payment of your money by your health care company. This plan is ideal for persons who travels often and does not have a choice of doctor or hospital or for an individual who rarely falls ill. The best part of it is that there are no restrictions; you can choose your doctor or hospital.
In manage care plans, medical services are rendered to you as long as you pay your regular bills. There are different types of managed care plans, but the three major types are point- of- service (POS), preferred provider organization (PPOs) and health maintenance organization (HMOs). Under these plans, there are health care service providers and a treatment is not covered if the treatment is not administered by this provider.
This plan is good for someone who wishes to have a detailed health care plan issued by their employer.
