Health Insurance
What kinds of health insurance are there?
Health insurance plans generally fall into one of two categories: Fee-for-Service and Managed care. Although these plans differ, they both cover an array of medical, surgical, and hospital expenses. Most cover prescription drugs and some also offer dental coverage.
1. Fee-for-Service: This type of plan allows you to choose your own doctors and pays for your medical expenses--totally, in part, or up to a specified amount per day for a specified number of days.
2. Managed Care: More than half of all Americans have some kind of managed care plan. Various plans work differently and can include: health maintenance organizations (HMOs), preferred provider organizations (PPOs) and point-of-service (POS) plans. Managed care plans generally provide broader coverage and involve an arrangement between the insurer and a selected network of health-care providers that provides financial incentives to patients who use the providers in the plan.
A good thing to keep in mind is that insurance is supposed to protect against a catastrophe, not pay for regular health maintenance costs. The more you agree to pay for things out of pocket in the form of deductibles and co-payments, the less you will pay in premiums.