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.

When you are a part of a managed health care plan you will be required to visit certain hospitals, doctors, and pharmacies. This is because these providers have a contract with your insurance. When you visit the participating providers you will have less paperwork and it will cost less to you as well. There are three kinds of managed care programs that you can look at.

The PPO (or preferred provider organization) combines managed and indemnity to come up with its own flavor. You can choose from professionals in the PPO network or outside the network. If you choose outside the network you simply pay the bill and then submit for reimbursement. If you choose a PPO doctor, you will pay a nominal flat fee for service.

HMO (or health maintenance organization) requires you to pay when you see an HMO doctor, but there is no plan deductible. HMO will give you a list of doctors to help you choose a primary doctor.

Indemnity plans have no predefined contracts and can therefore offer a wider choice among health care professionals. They will probably cost you more, however. You normally pay the bill up front and then submit a claim. Deductibles often begin at around $200.00 and may go higher. Plans vary in coverage but usually cover about 80% of the final bill.

Over time the distinctions between these two plans have begun to blur. Some indemnity plans are beginning to have some of the features of 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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