 What types of health insurance are available?
All insurance plans generally can be divided into two categories: indemnity plans (also known as reimbursement plans) and managed care plans such as preferred provider organizations, health maintenance organizations, and point of service plans.
An indemnity plan pays for you medical expenses totally, in part, or up to a specified amount per day for a specified number of days and allows you to choose your own doctors.
Managed care plans provide broader coverage, but they all involve an arrangement between the insurer and a selected network of health-care providers (hospitals, doctors, etc.). For example, health maintenance organization will require that a primary care doctor in the network coordinate all of your care and refer you to only network specialists.
But no matter which type of health insurance you choose, you should be sure it offers the right kinds of coverage.
What can be covered?
A good health insurance policy contains several types of coverage:
• Hospital expense insurance pays your room, board, and incidental services costs if you're hospitalized.
• Surgical expense insurance covers surgeons' fees and related costs associated with surgery.
• Physicians' expense insurance pays for doctor's hospital visits or for a visits to a doctor's office.
• Major medical insurance offers extremely broad coverage with a very high maximum benefit that's designed to protect you against losses from injury or catastrophic illness.
What might be covered?
When comparing health insurance plans, check to see if they provide additional benefits that you may need, including:
• Preventive care
• Prescription medicine
• Vision care
• Maternity care
• Mental health benefits
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