Tuesday, August 10, 2010

What are the Different Types of Health Insurance

Health insurance can be used by anyone for getting the medical help in case of ill health. Different companies are providing this insurance. Both the government organizations and the private organizations are providing this type of insurances. Firms and also the individuals can purchase this type of insurance. Several social welfare organizations are also providing this insurances.

There are two major categories in the health insurance. They are the traditional and the managed care insurances. Different plans are being included in this two types of insurances. Generally, four plans will come under this insurances. They are:
  • Traditional health insurance
  • Point of Service plans
  • Preferred Provider Organizations
  • Health Maintenance organizations
Depending upon the preferences and needs of health covers these plans are used.

Traditional Health Insurance: This type of insurance is being used from the past 30 years. This is also termed as the fee for service. Some deductible amount should be paid by the person then the majority of the amount will be paid by the insurance company. It is more expensive when compared to other types of plans. Out of pocket expenses i.e. Large medical bills can be reduced using this traditional health insurance. Because of the advances in the medical technologies the insurance companies are also changing their plans to manage care.

Managed Care: Most of the people, who use private health insurance are provided with different managed care plans. Although, different plans have their own importance, all of them will involve the same arrangement between the insurer and the network of health care providers. The managed care plans offer financial incentives to the police holder for using the health care providers.

Preferred provider organizations: It provides low fee for in-network health care providers. Financial incentives are given for the insured people who are within the network. But here the preventive care services are not being provided. For the in-network doctor the co-pay will be low for the in network person. But, for the out network provider the co-pay will be high. It is less flexible when compared with the traditional insurance and more flexible when compared with the HMO.

Health Maintenance Organization(HMO): Only small co-pay is required to be paid and there is no need of any deduction every year. This is least flexible plan, the medical expenses will be covered if you go to the provider in their organization. Before entering into the hospital for getting checked with the specialist, the primary physician will take care of you.

Point of service(POS): This insurance plan is just like the HMO. But here in this plan, you can see even the physicians which are not in the network, in turn you have to pay the some share of the charge which are deductible. There are some restrictions for the services of out network when we choose the POS plans like organ transplants, mental health etc.,

Apart from the other plans, there is one more plan which is same as the HMO and here unless it is an emergency, the expenses are covered within the network.

These are the different types of insurances and organizations that provide the insurances.

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