Health Insurance Facts
Health Insurance is available through two basic types of plans: Group Plans, and Individual Plans.
Group Plans are those that are offered directly by an employer, or are provided as a benefit from being a member of an association, club, or organization.
Individual Plans are purchased directly from an insurance company. Since most of your reading this site are probably here because you do NOT have employee or group sponsored health care plans, we will focus on these types of plans.
There are two broad types of Insurance available to you as an individual. Coverage and costs vary widely between the plans, so it is important to choose the plan best for you.
Here is a summary of each:
Fee for Service
Insurance company pays the bills AFTER care is received. These are traditional health insurance plans.
Managed Care Plans These fall in to three types of plans.
- Health Maintenance Organizations. (HMO's) They provide comprehensive services directly to you at a fixed monthly fee. You choose your Dr. from a network or group of heath care providers.
- Preferred Provider Organizations (PPOs) These are groups of doctors, clinics, and hospitals that contract with a health insurance companies to provide services at a preferred rate.
- Point of Service (POS) POS plans are a combination of the two. You can chose Drs, clinics and hospitals from a preferred provider, or a non-contracted provider at a higher rate.
You CAN have health insurance for you, your spouse, and your family for cheaper than you think!