Affordable Health Insurance: Indemnity vs Managed Care

The first thing that you should do when deciding on what type of insurance policy to purchase is to consider whether an indemnity health insurance plan or a managed care health plan is right for you. An indemnity plan allows you to pick you own physicians and covers a specified percentage of medical expenses, or all of it.

Managed care plans, such as HMOs and PPOs require you to have a primary care physician that is in their network, and can only consult with doctors in the network. Managed care is generally less expensive than indemnity plans, as it offers more coverage for less. But if you have a particular healthcare physician of whom you have been seeing for a long time, then an indemnity plan may be right for you, as managed care plans are more restrictive about who you may have as a doctor.

Points to Consider

Is the insurance company reputable?
Does the policy offer coverage for families as well as for individuals?
Does the policy cover those with pre‐existing conditions, and, if so, will there be a
waiting period?
What co‐payments or deductibles are required, and what are the limits?
Do you have the option to choose your own doctor?
Does the policy cover your physicians?
Does the policy provide the coverage you need?