What are the different kinds of group health insurance?
Indemnity and Managed-Care are the two main types of individual and family health insurance plans. Generally speaking, the most important differences between the two categories are the number of healthcare providers from which to choose, the amount of out-of-pocket expense, and the bill-paying process. Normally, indemnity plans offer more choices of healthcare providers than managed care plans, but it is important to note that indemnity plans pay their share of the costs for covered services only after they receive a bill. This usually results in required payment at the time services are rendered and then subsequent reimbursement by the insurance company.
Healthcare provider networks are the main structures utilized by managed-care plans. Insurance companies and healthcare providers within a network develop predetermined rates for specific services, and the providers agree to perform those services for managed-care plan patients as well as submit the claim to the insurance company. There are three main types of managed-care health insurance plans. These include Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Point of Service (POS) plans.
To summarize the two categories of plans, an indemnity plan offers a wider selection of healthcare providers and utilizes a reimbursement system; a managed care plan provides the options of lower out-of-pocket costs and very little paperwork along with a reduction in healthcare provider choices.
Small Business Health Insurance FAQs
- Am I eligible to enroll under a small business health insurance plan?
- Are there tax benefits that accompany buying group health insurance?
- Does my company qualify for group health insurance?
- How do I choose the best group health insurance plan for my company?
- How much of the employees’ premium is the employer required to pay?
- Is dental coverage automatically included?
- Should I only include employees who want insurance?
- The only two employees in our company are my spouse and me. How should this information be entered?
- What are the different kinds of group health insurance?
- What is a benefit rider?
- What is a Health Maintenance Organization (HMO)?
- What is a multi-plan?
- What is a Point of Service (POS) plan?
- What is a Preferred Provider Organization (PPO)?
- What is an Indemnity plan?
- What is the process for obtaining small business coverage?
- Why do you need to know my zip code?
- Why should I provide group health insurance to my employees?
- Will my final group health insurance costs be the same as the rates on my initial quote?