This is a health insurance plan comparison that won’t name companies but gives you a better idea of the type of insurance plan that will work best for you. There are many health care coverage companies on the market and it can truly be confusing to understand.
The more traditional insurance is a fee for service plan also known as an indemnity plan. The indemnity plans are a pay as you go plan, your provider will issue a bill for each visit or procedure. Pay the bill directly and then the insurance company will reimburse for the covered expenses. These plans generally cover costs for general practice care, dental care, medicines and psychiatric treatments.
The majority of the medical insurance plans are known as managed care plans. This has been designed to keep the rising costs of health care down. The innovative concept of managed care plans was to find doctors and hospitals willing to keep healthcare costs to a minimum. Some of the managed care plans are Capitated (per capita or per head) where doctors and hospitals are paid a certain amount each month for each added patient in their care with the preferred insurance plan. Other providers will charge a lower rate in order to be sent a higher volume of patients; this is called a discounted fee for service plan. Managed care plans have a lower premium expense and are not limited to a certain amount of doctors visits. The only two negative aspects of the managed care program is if you currently have a doctor they may not be a participating provider and the other issue is they may restrict treatment options that may be necessary for the individual. Always research for your personal needs. If you currently have a physician find out who they are organized with, normally they have more than one. If you have a health issue check and see what companies cover the treatment or treatments needed.