Types of health insurance available and coverage
There are typically two categories under which Health insurance plans generally fall
- Indemnity plans or reimbursement plans.
- Managed care plans such as health maintenance organizations (HMOs), preferred provider organizations (PPOs), and point of service (POS) plans.
Indemnity plan
In this plan, you can choose your own doctors, pay for all or part of your medical expenses or up to a specified amount per day for a pre-determined number of days.
Managed care plans
This kind of a plan generally provides broader coverage. It involves an arrangement between the insurer and a selected network of health-care providers, which may include certain specified doctors, hospitals and other health care professionals to provide care. For example, an HMO will require that a certain physician in the network look after all your health care needs and refer you to a specialist if so required.
The type of health insurance policy you buy will also depend on what kind of coverage it offers. A good health insurance policy will ensure you pay less for your insurance and contain different types of coverage.
Hospital expense
this will pay for your stay in the hospital and other incidental costs attached to it.
Surgical expense
this will all costs related to the surgery including the surgeon’s fees.
Physician’s expense
this will pay for all your doctor’s visits or for the doctor’s fees when if he is required to visit you at the hospital.
There is also a major medical insurance, which offers very broad coverage with maximum benefit to protect you against losses from catastrophic illness or injury. Additional coverage will include prescription drugs, preventive care, maternity benefits, vision care and mental health benefits.