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Types of Health Insurance
October 26th, 2010 | 
Author: There are different types of health insurances you can opt for. You should know the differences between the different possibilities so that you are able to select the one that best fits your needs, preferences and financial means.
Traditional Health Insurance
This type of health insurance used to be the prevalent form of insurance some years ago. It involves the traditional indemnity coverage. You pay a small part of the medical bill upfront and afterwards the insurance company covers the majority of the bill. The advancements in health care, technology and procedures lead to a growth in medical expenses. Companies started looking for new methods of doing business that better represents the diversity of services needed today.
Free-For-Service
This insurance type is connected with a good level of flexibility, higher out-of-pocket expenses and higher premiums. Under this type of health insurance you have the freedom to go to any doctor, hospital or health care provider you choose. However, you do not have the full freedom to decide whether the visit was necessary.
You might be required to pay a deductible of about 20% of the bill and then the insurance provider clears the difference. It might also involve other payment methods such as you paying and then getting reimbursed or the provider billing the insurance company directly.
Managed Care
Managed care involves an arrangement between the insurance company and a network of medical care providers. Patients are presented with good financial incentives to use the services especially of these specialists. The quality of service is continuously monitored and a formal selection procedure is established. This method of health insurance has existed in the United States for most of the 20th century, but has become increasingly popular in the last decade.
Other health insurance methods include preferred provider organization, health maintenance organizations (health plans) and point-of-service.