Health Insurance and Its Important Types

1. Health Insurance and Its Important Types Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses. There are two main types of health insurance:- 1.Public or government health insurance:- In this type of insurance, the state subsidizes healthcare in exchange for a premium. 2. Private health insurance:- The Centers for Disease Control and Prevention (CDC) say that the U.S. healthcare system relies heavily on private health insurance. 3. Managed care plans:- In this type of plan, the insurer will have contracts with a network of healthcare providers to give lower-cost medical care to their policyholders. 4. Indemnity, or fee-for-service plans:- A fee-for-service plan covers treatment equally among all healthcare providers, allowing the insured to choose their preferred place of treatment. 5. Health maintenance organizations (HMOs):- These are organizations that provide medical care directly to the insured. The policy will usually have a dedicated primary care physician that will coordinate all necessary care. 6. Preferred provider organizations (PPOs):- A PPO is similar to an indemnity plan, in that they allow the insured to visit any doctor they prefer. 7. Point-of-service (POS) plans:- A POS plan functions as a mix of an HMO and PPO. The insured can choose between coordinating all treatment through a primary care physician, receiving treatment within the insurer's provider network, or using non-network providers. Source:- www.medicalnewstoday.com w w w . c a p b l u e c r o s s . c o m