Benefits of a managed care

Benefits of a managed care plan

  There are many different types of health insurance plans out there.  Choosing the right ones can be tricky at first, especially if you don't know what you are looking for.  You may have trouble deciding which one is better for you.

  Health insurance is divided into two major categories - benefits and a managed care plan.  Compensation plans, also often referred to as reimbursement plans, will reimburse your medical expenses to some extent.  Under the reimbursement plan, the insurer pays a percentage of the total charges, regardless of how much the charges are.  With the indemnity plan, the insurer will pay a certain amount each day for a specified number of days.  The reimbursed amount does not count toward the cost of medical care, but what you are reimbursed will never exceed your costs.

  Another popular type of health insurance plan is a managed care plan.  Three types of policy that are classified as managed care plans are HMOs, POSs and PPOs.  This type of insurance is more popular than the compensation scheme, as it offers more flexibility.  With these types of options, you pay either a monthly fee, no matter how often you see a doctor, or pay a co-payment but no monthly fee.  With managed care plans you are given the option of care.  The plan you choose and the amount you want to pay determines how large a network of doctors and specialists you can see and will still be covered under the plan.  Some managed car programs (usually PPOs) offer sponsorship programs from a network of hospitals and medical services.  You can often get this kind of plan through your employer.

  Managed health care plans are better for the average person because they are more cost effective.  Although indemnity plans can provide you with much more freedom in costs, you must use the health care provider's choice.  If you have a certain disability, this can present itself as a problem.  In the long term, a managed care plan will save you money, especially if an emergency occurs when you're out of town.  These types of programs are also more flexible in strategy.  Be sure to research the many options available to you and your family before purchasing any type of health insurance to ensure you get the best coverage on the lowest monthly premium or deductible.