What types of health insurance are available?

Health insurance plans in the main fall into one of two categories: indemnity plans (also known as reimbursement plans) and managed care plans such as health maintenance organizations (HMOs), preferred provider organizations (PPOs), and point of service (POS) plans.

An indemnity design allows you to choose your own doctors and pays for your medical expenses--totally, in part, or up to a specified amount per day for a specified number of days.

Managed care plans generally provide broader coverage, but they all involve an arrangement 'tween the insurer and a selected network of health-care providers (doctors, hospitals, etc.). For example, an HMO will involve that a primary care physician in the network coordinate all of your care and refer you to specialists in the network.

No matter which type of health insurance you purchase, you'll need to make sure it offers the right kinds of coverage.

What should be covered?

A proficient health insurance policy contains several types of coverage.

Major medical insurance offers extremely broad coverage with a very high maximum benefit that's designed to protect you against losses from catastrophic illness or injury.

What might be covered?

When comparing health insurance plans, check to see if they furnish additional benefits that you may need, including:

Prescription drugs

Preventive care

Mental health benefits

Maternity care

Vision care

What will it cost?

In addition to the monthly premium disbursement, you may have other out-of-pocket costs. These costs can really add up, especially if you have children or other family members who visit the doctor frequently. Check to see if the health insurance plan you're considering requires you to pay any or all of the following:

Co-payment: The amount you'll have to pay each time you visit a health insurance provider (generally required by HMOs).

Deductible: The amount you'll have to pay toward your medical expenses (usually annually) before the insurance company begins to pay claims (generally required by indemnity plans).

Coinsurance: The percentage of your medical costs you'll have to pay after you reach any deductibles that apply.

Where can I get health insurance?

You may get health insurance through a group plan at exercise or through another group affiliation (a school, a club, etc.) or by purchasing an individual plan on your own. By purchasing an individual plan on your own, you may even be able to customize the health plan.

A good way to compare rates, plans, and options for your individual needs is to shop online. Complete online health insurance quote comparisons help to insure you get your best rate.

How do I decide which plan is best?

The best health insurance plan for you is the one that gives you the greatest flexibility and the most benefits for the lowest cost. Unfortunately, there's no such thing as a standard health insurance plan. As you would when making any major purchase, you'll need to shop around and get several quotes before choosing a plan. Here are a few points to consider:

What co-pays, deductibles, and coinsurance requirements apply?

How practically freedom do you have to choose your own health-care providers?

Does the plan cover the health services that you need?

Does the plan cover the health-care providers you're currently using?

Does the plan offer family, as well as individual, coverage?

Does the plan cover pre-existing conditions? If so, is there a wait period? (The average waiting period is three months to one year.)

Does the insurance company have a good reputation in the industry and a positive rating from a major ratings organization? (Contact your state's department of insurance for more than information.)