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You may frequently hear managed care and indemnity health insurance plans discussed in the news. These two types of health plans differ greatly in how they provide health care, with the nature of choice in each type of plan being the key area of difference.

Managed care plans have pre-existing service contracts that they have entered into with specific hospitals, health care providers, and doctors. A managed care plan will mean less paper work for you and much lower out of pocket expenses. There are 3 types of managed care programs available.

A PPO (preferred provider organization) has its own style when it comes to management and indemnity. You can select medical professionals who are both in the PPO network and those who aren't. The difference between the two options is that when you use an outside provider, you must pay the bill first prior to submitting it to the PPO for reimbursement. Using a PPO physician means you'll pay a small service fee, and then the bill will be sent to the PPO.

A health maintenance organization or HMO requires you to choose a primary care doctor and has a list of approved doctors for you to choose from. A typical HMO plan requires the patient to make a small co-payment with every visit to a doctor but there is no plan deductible.

On the other hand, the indemnity plans will offer you a wider choice of health care professionals to choose from because these plans have no predefined contracts. You can expect to outlay higher amounts. Generally you pay the bill and then submit it. Deductibles start at $200 and go up and most plans cover 80% although there are variations.

Over the years these two types of plans have actually begun to blur. In fact some indemnity plans are beginning to look more like managed care plans.

There may be some shops that use online services providing immediate health insurance quotes. Sometimes they are provided free of charge but a person has to fill a short form that makes him get many quotes from nearby insurance agents. With the help of the information collected from the form, the person and his family members' risk will be evaluated as they will be covered by the policy. The premiums and restrictions that the policy has will then be decided.

The type of health insurance you decide to purchase will depend on your personal needs and the needs of your family. By doing your research and understanding the different types of insurance available, you'll be better equipped to buy the health insurance that's right for you.

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