Advantages to Managed Care Plans There are many different types of Health insurance plans out there. Picking the right one for yourse...
Advantages to Managed Care Plans
There are many different types of
Health insurance plans out there. Picking the right one for yourself can be
troublesome in the beginning, especially if you don't know what you are looking
for. You might have trouble deciding which one would be better for you.
Health insurance is divided into
two large categories-indemnity and managed care plans. Indemnity plans, also
commonly called reimbursement plans, will reimburse your medical expenses up to
a certain limit. Under the Reimbursement plan, the insurer pays a percentage of
the total charges, regardless of how much the charges are. With the indemnity
plan, the insurer will pay a specified amount every day for a specified number
of days. The amount reimbursed does not rely on the cost of medical care, but
what you are reimbursed will never exceed your expenses.
The other popular type of health
insurance plans is managed care plans. The three types of policies categorized
as managed care plans are HMOs, POSs, and PPOs. This type of insurance is more
popular than the indemnity plan, as they offer more flexibility. With these
types of options you either pay a monthly fee no matter how many times you see
a doctor, or pay a co-payment but no monthly fee. With managed care plans, you
are given options of care. The plan you choose and the amount of money you wish
to pay determines how big of a network of doctors and specialists you can see and
still be covered under the plan. Some managed car plans (most often PPOs) offer
sponsorship programs from a network of hospitals and medical services. You can
often get this kind of plan through your employer.
Managed healthcare plans are
better for the average person due to the fact that they are more cost
effective. While indemnity plans may give you a lot more freedom in cost, you
will have to use the healthcare provider that the insurer chooses. If you have
a specific disability, this can present itself as a problem. In the long run, a
managed care plan will save you money, especially if emergencies arise when you
are out of town. These types of plans also are more flexible in policy. Before
you purchase any kind of health insurance, be sure to research the many options
available for you and your family to ensure you receive the best coverage
possible for the lowest monthly premium or deductible.
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