Health insurance is a significant aspect in a person’s well being. For most people, having a sense of security gives them peace of mind while going about their jobs and daily activities. To be sure that you will get help whenever you need is something that will help you get through some problems in life.
A health insurance plan provides you with the insurance to get assistance with medical expenses in the future in exchange for a monthly or annual premium and certain conditions. In this article, we will discuss the different health insurance options available for you to choose from.
The two main types of business health insurance are the Traditional Indemnity Plans and the Managed Care Plans.
Traditional Indemnity Plans:
For most Americans, the Indemnity Plans have played a huge part in their health insurance plans although there are also more individuals shifting to other types of plans. The choice mainly depends on the individual’s primary health care needs.
In the Indemnity Plan, you have complete liberty in choosing hospitals, doctors and other health care providers. However, the plan involves more out-of-pocket expenses and usually requires a specified amount of deductibles before the company starts paying. Some insurance providers require the client to pay the bills first and then reimburse the expenses at a later date. While you have the freedom to choose your health care provider, the insurer usually pays only a specified reasonable and customary rate. If you ever consult a doctor who charges higher than the specified rate of the insurer, then you will have to pay the extra amount. One disadvantage of the traditional indemnity plan is that it does not cover preventive care and often have a high ceiling for out-of-pocket expenses before the insurance kicks in.
Managed Care Plans:
Under Managed Care, there are three classifications.
· Preferred Provider Organizations (PPO):
As the name suggests, Preferred Provider Organizations have a network of preferred health care providers. Policyholders pay lower fees and gain higher incentives if they stay within the network. However, preventive care services are not covered in the policy.
· Point-of-Service Plans (POS):
POS are similar to PPOs in certain conditions. However, Point-of-Service Plans require that you select a Primary Care Physician from among their network of doctors, who will give permission prior to any medical treatment to visit to a specialist. Good thing about POS is that it covers more preventive care services and may offer health improvement programs, such as smoking cessation.
· Health Maintenance Organizations (HMO):
HMOs are the least expensive yet the least flexible among the Managed Care Plans. It caters better toward members of group plans than it does toward individuals. While PPO and POS may shoulder a percentage of doctors’ fees when you go outside the network, HMOs let you pay the entire amount. However, if you stick within the network, you will only have to pay a low co-payment. If you need to see a specialist, you will also have to get you Primary Care Physician’s approval, however, if you get incapacitated, there is no need for clearance before you can be taken to the emergency room. HMOs mostly cover preventive care services and health improvement programs.