Purchasing health insurance reduces your financial risk. With health insurance, you protect yourself and your families need for medical care and the cash needed to pay for it.
Fee for Service (Indemnity Plan)
This type of health insurance offers the most choices of doctors and hospitals. You can choose any doctor you wish. You can go to any hospital in the U.S.A.
Basic protection pays the contractual costs of a hospital room and care. Basic coverage also covers the cost of surgery, in-patient or out-patient., and for some doctor visits. Major medical insurance covers the cost of illnesses or injuries.
Some policies combine basic and major medical as a. comprehensive plan.
Health Maintenance Organizations (HMO)
Health maintenance organizations are prepaid health plans. An HMO member pays a monthly premium. The HMO provides comprehensive care.
Preferred Provider Organizations (PPO)
The preferred provider organization is a combination fee based system and HMO. There are a limited number of doctors and hospitals in the network. When you use these providers or network your medical bills are covered according to the agreement on the policy.
Most Americans get health insurance through a spouses employment. The employer pays part or all of the employee premium.
Group health insurance is continued for 18 months to 36 months by COBRA ( Consolidated Omnibus Budget Reconciliation Act of 1985). Specific regulations apply by the number of employees in a company but the policy holder pays the entire premium.