Purchasing Health Insurance: Basic Facts You Need To Know

care has become extremely expensive for most people to tolerate. As important as it is to buy health insurance, it is also important to save money, especially in these times of economic difficulties. The only way to save money and to get a good deal is by researching. Before committing to a specific health care insurance, one must study the variety of health plans that are being offered by conducting some online research.

It can be overwhelming to research and not understand a word of what is being read. That is why prior to researching, one must learn there are two different types of health insurances. One type is called indemnity plans, also known as reimbursement plans, and the second type is the managed care plans, which include health maintenance organizations, preferred provider organizations, and point of service plans.

With indemnity plans, offered by most traditional insurers, a person is allowed to choose their own doctor and is entitled to either completely pay for the medical expenses, pay part of it, or up to a specified amount per day for a specific period of time. Then the medical expenses are reimbursed, however, in some cases the reimbursement may be limited.

The managed care plans provide wider coverage and make an arrangement between the insurer and a selected network of health care providers like doctors, hospitals etc. Policyholders are offered major financial motivation to use the providers in that network. However, a health