Health Insurance in the U.S.

Health Insurance in the United States

From routine visits to the doctor's office to surgical procedures, taking care of your health is expensive. To responsibly take care of these costs, a person needs to have health insurance. Health insurance is a complicated matter and one that has only been relevant in the last five decades. In the United States there are three main types of health insurance.

The first is Uninsured/Self-Insured . Currently 30% of Americans fall into this category. Having on insurance, means that the individual is responsible for paying 100% of the cost.

The second type of insurance plan is the Managed Care Plan . This in itself falls into three subsections. The first is the Health Maintenance Organization (HMO) . This is a prepaid plan where members pay a monthly fee, and this fee is fixed regardless of how much medical care they require per month. The second is the Preferred Provider Organization (PPO). This is a group of hospitals and doctors that only provide care to a specific group. Members of this plan will only pay for services as and when they are required and the price for each service is arranged in advance. The third is the Point of Service (POS) . This is less common than the other two and involves paying no deductable and only a minimal co-payment. This involves a person choosing a primary physician who will be responsible for all referrals and you must stay within this network to avoid excess charges.

The third type of insurance plan is the Indemnity plan . This allows participants to seek medical care and assistance whenever they require it. There are no restrictions on medical assistance and this is the most expensive of all health insurance plans. As you can see, health insurance is a complex issue and finding the right plan depends greatly on your own personal situation.