Many people have been left with numerous questions about purchasing medical insurance for themselves and their family. You want to make sure you have the right coverage and that it is in fact affordable for you. Here are the questions you should be asking yourself and insurance providers before purchasing a medical insurance policy.
2Is it an indemnity plan or managed care?
The difference between the two is an important one. With an indemnity plan, you will pay for a certain percentage of all of your care. They are also known as fee-for-service plans. The advantage with this is that you will typically be allowed to choose your own doctors.
A managed care plan, which can be an HMO (Health Maintenance Organization) or PPO (Preferred Provider Organization), means minimal out-of-pocket expense. With an HMO, you or your employer pay a monthly premium, but you can only see doctors in the plan. With a PPO, you or your employer get a discount for using doctors that are within the plan. You can see doctors outside of the system, but it will cost you.