Health insurance falls within two primary categories: fee-for-service or managed care. Although these plans differ, they both cover an array of medical, surgical and hospital expenses. Most of these plans will cover a potion of prescription drugs and offer some form of dental plan as well.
- Fee-for-Service plans allow doctors and other medical professionals to be paid a fee for each service provided to a patient. In most cases, patients can select any doctor of their choice. Once a service is performed, the doctor or patient can file a claim for payment.
- Managed Care plans are used by most Americans. While not all plans work the same, most include: health maintenance organizations (HMOs), preferred provider organizations (PPOs) and point-of-service (POS) plans. These plans provide comprehensive health services to their members.
For most people, the most common way to obtain health insurance is through their employer. This is probably the most economic and convenient route. However, not all health insurance plans are the same. They vary greatly. For example, some plans require a co-payment for each visit to the doctor, while other plans do not. The amount you are required to contribute to your health insurance coverage premiums will vary as well. In some cases, your employer will cover as much as 100 percent of your health coverage, while others will contribute as little as 50 percent.