Types of Health Insurance

By | April 26, 2010

Health insurance pays money for some or all parts of health care bills. The health insurance’s purpose is to help people to cover health costs. Health care costs may be hospital stays, doctor visits, surgery, tests and other treatments or services.

Major medical insurance: In this type of insurance, before insurance pays benefits, insured has to pay a deductible. Then the insurance company pays 80 percent of the medical bills and the insured has to pay the remaining 20 percent. Doctor and hospital bills can be chosen by insured, he can pay the money to provider directly, and then insurance company will reimburse 80 percent of the medical bills. First insurance company pays the medical bill to health provider directly and insured is responsible for remaining 20 percent of the medical bill.

Health maintenance organization: Is one type of the insurance that focuses on the insured’s long-term care. It is expensive than major medical plan. Here there is primary care physician, and he is responsible to provide preventive care for the patient, and he has to provide additional specialists to patient, if there is any necessary. In this you will have limited choice to select the doctor within the network.

Preferred Provider Organization: In this, there is no limit to select the doctor within the network. Insured can choose any doctor. Here, deductibles will be less, if insured selects doctor within network. And insurance company will pay 80% of the charges in network.

Point of service: It is association of a preferred provider organization and health maintenance organization. Primary physician is chosen by insured and consulting the physician will start health care. If there is any necessary this doctor makes a reference to a specialist in or out of network.