What are the Two Basic Categories of Health Insurance?

Essentially the two types of medical health insurance offered are called:

• Fee For Service and
• Managed (Health) Care

Although both plans are dissimilar, they do cover the vast range of hospital and medical expenditure- including surgical costs. While some allow for dental cover, they do extend their reach to include prescription drugs.

Fee for Service

Involves the insured patient visiting the doctor of his choice, and paying him a fee for each service extended to him by the medical professional. The insurance claim is then filed by either the insured patient or the doctor.

The Managed Care Plan

Used by a majority of Americans in some form or the other. Not only do these Plans allow for complete health service cover to the customer, but also provide financial incentives to those insured patients who use the same. There are on the one side:

• The Traditional Indemnity Plans, and on the other
• The HMOs or the Health Maintenance Organization. In between we have
• The PPOs ( Preferred Provider Organizations) Plan and
• The POS (Point of Service) Plan.

The latter two are hybrid variations of the traditional indemnity plans and the HMOs. While the HMO is normally credited with providing the customer the cheapest and most affordable health insurance but with minimal benefits, the indemnity plans are considered the most expensive but crediting with providing the customer maximum benefits.

Indeed, America's health insurance companies are in the forefront with regard to providing comprehensive and reasonably priced medical health insurance. They have been carefully put together by some of America's leading and dynamic healthcare leaders so that her peoples may avail of these medical health insurance policies to combat any medical contingency. While you would need to regard good health as your most important asset and a reliable indicator of your current lifestyle, opting for a sound and economically viable medical health insurance cover does appear to be the next most sensible alternative.

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