INSURANCEInsurance is a system whereby individuals and companies concerned about potential hazards
pay premiums to an
INSURANCE company. The insurance company reimburses them in the event of loss. Depending upon the type of policy, the reimbursement may be in whole or in part.“Insure your Health and be Rest Assured.”
HEALTH INSURANCE
What is the most coveted possession of any individual? Is it his ability, intelligence, innovation or the single most asset-Health that enables him to use all other that he has. Health that encourages efforts, health motivates mind, and health grants you enjoyment is undoubtedly the biggest and most crucial asset of any or every living being. The wealth of health gives the requisite potential to battle all odds and move ahead with life. Naturally, such an essential part of a person’s life needs special
care and protection. The ideal way to secure an individual’s cherished possession for him and his loved ones is Health Insurance.
Health insurance has the insured, who pays premium to protect his health and the insurer who is obliged to meet the expenses if the insured falls sick and playing their part like any other insurance.
Certain disease are not covered by health insurance are listed in the document.
HOW DIFFERENT ARE THEY?There are various health insurance plans.•
Traditional indemnity
plans or Fee-for-service plans;
• Preferred
Provider Organizations
;
• Point-Of-Service plans ;
• Health Maintenance Organizations
• Traditional Health Insurance
Fee-for-serviceFee-for-service is a method of payment in which each service provided to the patient is associated with a corresponding fee to be paid to the provider that allows the holder to make almost all health care decisions independently.
Health Maintenance Organizations (HMOs)Health Maintenance Organization (HMO) offers prepaid, comprehensive health coverage for both hospital and physician services for a specified period. HMO works with health care providers like physicians, hospitals, and other health professionals. HMO is the most restrictive form of managed care benefit plans because it restricts the procedures, providers and benefits.
Preferred Provider Organizations (PPOs)Preferred provider organization (PPO) is an organized group of health care providers like hospitals and physicians who render particular services at a discount. A PPO can be a legal entity or it may also be a function of an already formed health plan, HMO or PHO. The PPO encourages patients to go to their providers who are not part of the PPO but it will cost the patient more money.
Point-of-Service Plans (POS)Point-of-service plan (POS) offers the option of choice to its members to receive service from a participating or a nonparticipating provider. It is a combination of HMO and PPO In case of a non-participating provider, the level of coverage is generally reduced. The patients who go outside of the plan may pay more out-of-pocket expenses.
Traditional Health InsuranceTraditional health insurance is generally the most flexible and more expensive type of health plan that allows choosing any doctor and seeing specialists without getting approval from a "primary care physician." With traditional health insurance, you have to spend certain amount on medical bills each year before your insurance starts to pay, called a deductible. After that, you will have to pay a percentage of each charge, called a co-payment. The insurance company will pay the rest of the charge based on what it considers reasonable. Many insurance plans protect you from large medical expenses by limiting your total expenses in any given year, called your out-of-pocket expenses. There may also be a cap on total benefits--a maximum amount the insurance company will pay in your lifetime.
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