There are so many types of health insurance to choose from, it’s no wonder people often feel helpless about it.
At InusranceUSA.com we provide you with thorough and up-to-date information on all types of health insurance.
Typically, health insurance can be divided into two overarching categories: traditional and managed care. These can further be broken down into four basic plan types:
- Traditional indemnity health insurance; now often called Fee-for-Service (FFS) plans.
- Preferred Provider Organization or PPO
- Point-of-Service or POS
- Health Maintenance Organization HMO
Indemnity Health Insurance
Indemnity or fee-for-service (FFS) coverage used to be the normal way of buying health insurance.
With indemnity, you choose your own doctors, hospitals, and other healthcare providers. You can go see any specialist you want or have any procedure you need without the insurance company’s say-so. Indemnity health insurance is managed to a certain point so you may have to get clearance for some things.
Indemnity health insurance costs more in terms of out-of-pocket expenses. You will most certainly have a deductible around $200 to $2500 and even after you meet it, the insurer may pay for only 80% of the bills. In addition, you may face more paperwork since you may have to submit bills for reimbursement unless the healthcare provider bills the insurance company directly.
There is a ceiling for how much you will have to pay out-of-pocket. Once you reach your maximum, the insurance pays 100% of the costs there on.
Under indemnity health insurance plans, you will usually be covered only for reasonable and customary medical expenses. If your doctor charges more than what the insurance company feels is reasonable, then you may have to make up the difference out-of-pocket.
Many plans used to not pay for preventative healthcare procedures but as time goes on and prevention of costly diseases outweighs paying to treat them, many indemnity insurance plans are changing to include preventative care.