Related Articles
A Focus on Managed Care Health Insurance
Health insurance comes in two basic forms – indemnity plans and managed care plans. Both indemnity and managed care health insurance are further broken down into several different types of health insurance so it is important to take the time and compare health insurance plans to determine what best fits your health care needs. Each type of health insurance offers different benefits, costs and control you personally have over your medical services
Types of managed care health insurance
Managed Care Health Insurance
The two most common types of managed care health insurance are health maintenance organizations (HMOs) and preferred provider organizations (PPOs).
HMOs give you access to a group of participating doctors, hospitals and health care providers. HMOs come with fewer out-of-pocket expenses, but visits to the doctor, prescriptions and other services usually come with a co-pay or fee. Also all your medical services are handled through your chosen primary care physician.
PPOs are fee-for-service health insurance and medical services are paid by the insurer on a negotiated and discounted fee schedule. PPOs include a group of in-network health services, but allow participants to choose medical providers outside the plan’s network. Going out of network can result in higher out-of-pocket costs.
Did you know? Employer-based health insurance can be managed care or an indemnity plan depending on the specific health benefits offered by your company.
Takeaways:
- Health maintenance organizations (HMOs) are the most popular type of managed care health insurance
- Preferred provider organzations (PPOs) give you the option to utilize medical services and providers outside the network of your plan
- Going out of network with a PPO requires you to pay the difference between what your plan covers and how much the medical services cost.
An independent online resource is the fastest and easiest way to have health insurance providers compete for your business. Click here if you are ready to start comparing health insurance quotes from multiple providers.