Understanding Different Types of Health Insurance

The cost of healthcare continues to rise as the economy gets worse, but is something you're your family should not do without. Learning the good and the bad about all the kinds of healthcare is important, and knowing how your policy rates vary is also something you should look into. It is good to be able to differentiate between differing health insurance so that you can choose the right one for you.

Categories of Health Insurance

Basic and Major Medical Health Insurance, known as indemnity plans, cover a range of everyday medical treatments, but Major Medical pays for a larger variety of services. They both cover surgeries and medical emergencies, but Major Medical also includes prescriptions, dental health services, lab tests and more. The amount that your health insurance company will pay is limited with Basic Medical, but the dollar limit is higher with Major Medical.

Managed Care Plans

Health Maintenance Organizations, Preferred Provider Organizations, and Points of service are known as managed care plans and basically offer a large choice of coverage. These three all involve an agreement between the insurer and a network of healthcare providers.

Questions for Your Health Insurance Provider

When you are deciding on a plan, the following questions may arise:

What deductibles, coinsurance, and copays requirements apply?
Am I able to pick my own provider?
How will I know if my physician is covered on the plan?
What does my plan cover? Dental, vision, chemotherapy?
If I have a pre-existing condition, will I be covered or will there be a waiting period?

The best policy is one that meets your and your family's needs, and costs a fairly low price.