Health Insurance : Explaining the Different Types of Individual Health Care

Finding a health care plan that covers your families needs and fits within your budget can be a time-consuming task. The type of health insurance you choose should cover all members of you family, pay for most if not all of your health care needs and it should also be easily accessible to both you and your doctor so that all of your medical bills are paid for in a timely manner.

Indemnity Plans

These health care plans will cover most hospital and doctor’s visits and some outpatient treatment services. At the time of service provided by a physician, you are billed directly, then reimbursed by your insurance provider. You pay a premium every billing cycle to the insurance provider who in turn provides you with proof of insurance coverage. Most indemnity plans have a deductible, which must be met before they assume any liability for medical bills. Co-payments are also common; a non-reimbursable fee that you pay each time you visit a physician.

HMOs and PPOs

With Health Maintenance Organization (HMO) plans and Preferred Provider Organizations (PPO) plans, insurance companies contract specific doctors and hospitals to do business with. As a member on these health insurance plans, patients select a doctor from an “in-network” list provide by the insurance company. If patients see a doctor not contracted by the insurance provider, the patients are either charged an additional fee or must pay for the doctor’s services themselves.

High Deductible Health Plans

These plans allow for little or no out-of-pocket costs at the time of services, but as the name implies there are usually a high deductibles and out-of-pocket spending caps as part of this plan. These plans work as a savings account for current and future medical bills when the patient opens a savings account with these plans. There are generally investment caps to limit how much can be invested in an account per year, but the money is tax and penalty free once withdrawn for medical uses.

Choose a health insurance plan wisely and after doing a good amount of research on the provider. The times when you use your health insurance can be crucial and that is no time to find that the company you have chosen has left you without the necessary coverage.

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