With the different types of health insurance coverage, it is important to know what they offer and how they benefit you, how you are covered, and what you are expected to cover. Because in most of lives, the most important thing is the bottom line… how much is this going to cost me? A very important question, however first you must understand the different types of coverage in more detail.

Managed care plans provide the most inexpensive out of pocket healthcare fees. This is an upside to consumers because it allows them the convenience of not worrying about breaking their pockets when something happens. Also, to keep their coverage prices reasonable and affordable for the consumer, there are many times a set of rules that are to be followed. With this type of health insurance, patients are encouraged to stay within the agency’s network of providers and healthcare facilities. Managed care is broken up into two separate categories, health maintenance organizations or HMOs and preferred provider organizations.

Fee for service or indemnity health insurance can be obtained on their own or through groups such as employers, organizations, or associations. These plans normally offer the freedom to choose their own healthcare providers including specialists and hospitals. The expenses for the healthcare are typically divided between the agency and the consumer, each of them paying a set percentage of the medical costs. These sorts of plans have a set amount that the consumer must pay out of pocket for the services rendered.

Point of service plans are a combination of both managed health insurance plans, as well as indemnity coverage plans. These may have some set credentials that must be followed to the letter so it is important that one does their research and fully understands exactly what it is that they are signing up for.

With there being such a variety of different plans and information, it cannot be said enough that knowledge and understanding of the products is an absolute must and is dire to being a satisfied health insurance customer. It is important to compare premiums, deductibles, and co-pays. It is also important to know exactly how much the coverage will provide in a dollar amount because in the case of an extended hospital stay, it will not do any good to have minimal coverage. These are all things that can be avoided with the right information and plenty of questions to the agency you as the consumer is considering.

Tags: health insurance, indemnity coverage plans, managed care