Having a health plan is essential. But if you do not have one it is direful. Bearing high health care cost is not only difficult but very expensive as well. There are a lot of things to be considered before making a choice in favor of a health plan. Moreover, once you start looking for them you will be amazed by the number of health care providers that are there in the world today. Moreover, there will be many terms which might confuse you and make the choice difficult. The latest estimates show that the health care expenditure is nearly 15% of GDP in America alone. A health care plan could be provided for by the employee or could be purchased individually. Mostly the health plan will cover for your medical bills, surgeries and hospital expenses.
One kind of plan is fee for service, it generally refers to that the doctor or hospital fee will be paid for each and every service provided by them to the person insured. With fee-for-service plan, you get to select the medical provider of your personal preference and make the payment from your pockets. But these fees can be claimed from the health plan provider However, you will only be reimbursed for the medical expenses, that are in your benefits summary.
The other types of plans are known as managed plans. Managed care health plans are also of three kinds health maintenance organizations (HMOs), preferred provider organizations (PPOs) and point-of-service (POS) plans. A health maintenance organization or HMO is a kind of managed care plan that provides a form of health insurance coverage that is fulfilled through hospitals, doctors, and other providers with which the insurance provider has a contract. Whereas, a preferred provider organization or PPO, provides for medical doctors, hospitals and other health care providers who have entered into a contract with an health insurer to provide health care at discounted rates to the insurer's clients. A point of service plan or POS plan merges the features of both the HMO and the PPO plans. Members of a POS plan do not make a selection about which system to use till the point at which the service is being used.
There are many other things which need your undivided attention while selecting a health plan. Moreover, it is essential to confirm the credibility of a health care provider. An appropriate health plan will ensure that you are optimally covered with fair terms and policies.