With rising prices of medication, hospitalization, and doctors' fees, health insurance plans have become an important investment for families and companies. The first step, though, in deciding on a good health insurance plan for you and your family or staff is to understand the different types of health insurance plans available.
Also called Indemnity Insurance, this type of health insurance plan pays for part or all of the fees for medical services such as consultation, check-ups, lab work, and hospitalization. You can also visit the internet to buy a Texas family health insurance plan.
The advantage of fee-for-service plans is that you can choose which doctors and hospitals are included in your health insurance plan, as long as they are accredited by the insurance company. You pay for the service and make a claim to get reimbursed for what you spent if that particular medical service is covered in the policy.
Health Maintenance Organizations (HMO):
Health Maintenance Organizations, which are also a type of managed care health insurance plans, provide medical care on a pre-paid basis, where plan holders pay a monthly, annual, or bi-monthly fee for healthcare. A primary healthcare doctor is selected from a list, and this doctor is in charge of all your healthcare needs.
A referral is needed from your primary doctor before you can see a plan-accredited specialist. HMOs also focus more on preventive healthcare rather than treatment.