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Buying Health Insurance: Indemnity and Managed Care Plans
Updated: 8/10/2009 11:33:54 AM

Learning the basics of your health insurance options is very important. Gaining a better understanding of how health insurance works is necessary in order to get the perfect coverage with the greatest flexibility and benefits at the lowest cost.
Many people are at a total loss when it comes to understanding the terms of the health insurance industry. Basically, there are two types of health insurance coverage. One type of health insurance plans is called indemnity care. It allows you to choose your own doctor, hospital and other care providers and services on your own.  Insurance company will then reimburse a percentage or a maximum amount for the health care services, and the patient is obligated to repay the remaining balance.
The second type of health plans is called managed care. The patient must only seek out treatment in a contracted network. There are three different managed care types: health maintenance organization (HMO), preferred provider organization (PPO), and Point of Service (POS).
Health insurance companies make you responsible for a deductible which is the amount you must pay towards your medical expenses before your insurance company pays. The higher the deductible amount, the lower your premiums will be and vice-versa. Some companies may also make you responsible for a co-payment which is the amount you pay each time you visit a doctor or other health care provider. As well as a co-insurance which is the percentage of the medical bill you have to pay for after you have attained the valid deductible.
Basically, managed care plans are better suited for the patient because they end up being more cost effective in the long run as they allow you to minimize your expenses. If your aim is maximum flexibility, you should consider purchasing an indemnity plan.
Buying health insurance is a vital need for individuals and their families. But before discussing a contract with a health insurance agent, some forget to study the basics of health insurance. This is when buying inadequate health insurance occurs and the consequences begin, leading consumers to find themselves in a situation where their doctors are not in a contributing network or their health and even their finances are at risk.
To get affordable health insurance coverage, one must gain a better understanding of how health insurance works in order to be able to ask the right questions when speaking to a negotiator. Being prepared will give you the exact plan you want at the lowest costs.
When negotiating a policy with a health insurance broker, make sure to ask if the company offers such benefits as preventive care, prescription drugs, vision care, dental care, maternity care, mental health benefits. The more you know about health insurance, the better the policy will fit you. When you are searching for a health insurance policy, make sure you understand all the details offered in the policy and pay particular attention to the exclusions and restrictions.

© 2009 HealthCare.com

 

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