Medical Insurance Health Types can be split into two broad categories. Traditional and managed care are the two groups. Within these two groups there are four sub divisions. This is the defining principal of health insurance.
POS’s This is point of sale. HMO’s, health managed organizations. PPO”S preferred provider organizations and lastly free for service plans, these used to be known as traditional indemnity plans.
All of these are equal in that there is no one plan that is exceptionally better than the next. Depending on your budget and your needs will determine which plan you select. With free for service you have the most choice and freedom to use pretty much any service provider or care giver that you see fit to use. HMO’s are good for you if you need to watch your budget. Competition is rife in this industry so for the best value for money do due diligence so that you can avoid disappointment.
In the 60’s and 70’s free service plans was pretty much all that was on offer. People would pay a monthly premium and then when claim time comes the insurance company would pick up most of the tab.
With medical science and the health drive doing their bit people live longer now than in days gone by. Ironically this has caused insurance companies to take some heavy knocks on the claims front. It is to this end that the industry has revamped their strategy and plan types. Managed care has become ever more and more increasingly the plan of choice.
Free for service gives patients extreme latitude when it comes to receiving medical attention and medical testing.
The not so pretty thing about this plan is that you will spend more of your own money by having to pay the first portion of the claim. You also would pay the entire bill to the service provider and then the insurance company will reimburse you.
Only normal ailments and procedures are covered There is a prescribed rate or tariff that is used when insurance companies pay out any excess due to service providers charging more would be picked up by the patient. Prevention is better than cure is taken seriously by insurance companies and certain preventative medicine and procedures are also covered under this type of plan.
There are many more aspects regarding the insurance health types but that is for another article.