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| Advantages to Managed Care Plans |
There are many
different types of Health insurance plans out there. Picking the right one for
yourself can be troublesome in the beginning, especially if you don't know what
you are looking for. You might have trouble deciding which one would be better
for you.
Health insurance
is divided into two large categories-indemnity and managed care plans.
Indemnity plans, also commonly called reimbursement plans, will reimburse your
medical expenses up to a certain limit. Under the Reimbursement plan, the
insurer pays a percentage of the total charges, regardless of how much the
charges are. With the indemnity plan, the insurer will pay a specified amount
every day for a specified number of days. The amount reimbursed does not rely
on the cost of medical care, but what you are reimbursed will never exceed your
expenses.
The other popular
type of health insurance plans is managed care plans. The three types of
policies categorized as managed care plans are HMOs, POSs, and PPOs. This type
of insurance is more popular than the indemnity plan, as they offer more
flexibility. With these types of options you either pay a monthly fee no matter
how many times you see a doctor, or pay a co-payment but no monthly fee. With
managed care plans, you are given options of care. The plan you choose and the
amount of money you wish to pay determines how big of a network of doctors and
specialists you can see and still be covered under the plan. Some managed car
plans (most often PPOs) offer sponsorship programs from a network of hospitals
and medical services. You can often get this kind of plan through your
employer.
Managed
healthcare plans are better for the average person due to the fact that they
are more cost effective. While indemnity plans may give you a lot more freedom
in cost, you will have to use the healthcare provider that the insurer chooses.
If you have a specific disability, this can present itself as a problem. In the
long run, a managed care plan will save you money, especially if emergencies
arise when you are out of town. These types of plans also are more flexible in
policy. Before you purchase any kind of health insurance, be sure to research
the many options available for you and your family to ensure you receive the best
coverage possible for the lowest monthly premium or deductible.