Health Insurance Plans
Your health is your most important asset. It's important to protect your health through responsible living and medical care. Health insurance can supplement the rising costs of important medical treatments and prescriptions, but as essential as health insurance is, it can often be confusing.
When health care is needed, the most responsible way to protect yourself and your family from financial disaster is to understand your coverage and know your options. To help you, we've assembled a list of health insurance plans as well as explanations for how they work.
What Kinds of Health Insurance Plans Are Available?
Health insurance is broken into two main categories: private insurance and government-sponsored insurance, which we explain in detail in our health insurance basics section. Unless your health insurance comes from a government program, you are likely insured with private health coverage. If you receive health coverage through your employer or through another person's plan, you have private health insurance.
Within the realm of private health insurance plans, there are two main types of programs:
Managed-Care Programs
Managed-care programs strive to provide medical care while reducing unnecessary costs. Under a managed-care program, the final cost of your treatment depends on a variety of different factors, including:
- Your Health Care Provider
- Your Hospital Visit and the Length of Your Stay
- Your Preventative Care Strategies
- Your Health Care Provider's Use of Less Costly Techniques
- Your Need for Certain Treatments
Some of the more popular managed-care programs include:
- Health Maintenance Organizations (HMOs)
- Point-of-Service Plans (POSs)
- Preferred Provider Organizations (PPOs)
Terms and conditions of medical care—including choice of primary care physician (PCP), prescription coverage, and method of payment—will vary depending on your specific managed-care program and provider.
Indemnity Programs
Also called "fee-for-service" or "reimbursement" plans, indemnity programs require the patient to pay a percentage of their initial health care costs, with reimbursement or other benefits available from the insurance provider. The service may also require patients to pay a yearly fee, known as an annual deductible.
While indemnity plans may require more out-of-pocket spending than managed-care plans, they can possibly offer you more freedom in selecting a health care provider. Payment amounts, deductibles, and other restrictions vary between plans and providers, so make sure you understand all the details of your agreement.
Some of the more common indemnity programs include:
- Indemnity Health Plans
- Flexible Spending Plans
- High-Deductible Health Plans
- Health Savings Accounts (HSAs)
If you're unsatisfied with the amount of coverage you receive from your health insurance, consider seeking a provider that makes you feel comfortable. Of course, you should always learn more about your plan and others before making any financial moves. This article is a useful starting point for further reading into the details of your health insurance options, but if you're interested in learning more, you should consult your employer or a local insurance provider.