Frequently Asked Questions

What types of individual or family health insurance plans do I have to choose from?

There are three major types of plans: indemnity, preferred provider organization (PPO) and health maintenance organization (HMO). Indemnity plans pay a share of your healthcare costs upon receipt of a bill from a health care provider. Sometimes you might have to pay your provider (doctor or hospital) immediately when they provide service, then wait for reimbursement from your insurance company. PPOs, on the other hand, use healthcare provider networks. Doctors and hospitals within this network agree to provide services to you, the patient, at pre-negotiated rates and submit their bill directly to your insurance company. HMOs require you to visit a designated primary care physician first before seeing other specialists within their network. HMOs and PPOs can be lighter on the paperwork, but indemnity plans usually give you greater choice in selecting doctors.

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