Welcome to your complete online guide to health insurance. We’re all about helping you find the perfect health coverage at the cheapest price.
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Here’s the scenario: You’re employer is not paying for your health coverage or is not providing you with enough coverage. Yes, I know, we can all relate. Where am I going to get health insurance from? How can I make sure my family is covered? How am I going to afford it? I’ve been there as well as millions of other Americans. Since we don’t have universal health care like our neighbors to the north, we’ve got to find it the ol’ fashion way: by shopping for it.
But we can’t buy what we don’t know we need. So if you’re not covered by your employer, you need individual and family health insurance. Secondly, you’re looking for either two kinds of plans, they are (1) managed care plan or an (2) indemnity plan. Whoa, whoa this is getting confusing. Okay, don’t worry relax, let’s break these two options down.
A managed care plan is one in which you will use what is called a “healthcare provider network”. This is simply a group of doctors and other medical support that are paid by your insurance provider to take care of your medical needs. Keep in mind they are paid to do certain medical procedures as outlined in your coverage contract. The downside with this plan is that you can only get coverage from the doctors the insurance company approves of. However, going with this type of plan is less stressful as your healthcare provider will bill your insurance company directly. Bonus tip: When you hear things like HMO or PPO, they are referring to managed care plans.
The word “indemnity” in the insurance context is when an insurer pays you back for a loss: no more, no less. In the context of health plans, an indemnity plan is one where you pay out of your pocket for your health coverage and then are reimbursed or indemnified by your insurer. This creates a little more hassle for you as you will have to send your insurance company your receipts as well as make sure your procedure is covered. On the plus side, you have more access to health providers as you are not constrained by having to choose only doctors from a particular network.