One’s health is a very important matter. Medicine and treatment cost a lot these days, however, there are some ways to try and lessen the financial burden and medical insurance is one of them. Below are the different types of medical insurances and how they function.
The first type of medical insurance is indemnity coverage. The patient will be able to choose his own doctor and then pay for his services. Then, the patient will be asked to keep all receipts and paperwork in order to keep track of the healthcare company’s reimbursement. The amount paid by the health insurance depends on the predetermined balance that they acquired. They are given the figure according to the deductible and other details.
The second type of medical insurance is managed care. Unlike indemnity, managed care aims to guide people to visit doctors that are preapproved by the healthcare company. There are three sub-categories for managed care: health maintenance organization (HMO), preferred provider organization (PPO), and point of service plans (POS).
An HMO is a type of managed care because where a certain premium is paid in order to get support from the list of approved doctors. Depending on the premium and the plan that the patient is enrolled on, the healthcare company shoulders the expenses; as long as the patients visit only the approved doctors. In some cases, the health care contractors in Chicago ask the patient to pay some amount.
PPOs work almost the same as an HMO in terms of payment. Patients have to pay a premium in order to get the healthcare benefits.
The main difference is that PPOs do not require referrals for specialists from approved doctors. The patient can go straight to the specialist. Another difference is that acquiring services from non-approved doctors is allowed; only the patient will have to shoulder a bigger percentage of the bill. If a dental office construction Chicago is needed, they can visit the best doctor, but the healthcare company does not pay for the majority.
POS is a managed care service that mixes both HMO and PPO. It works under the premise of paying less but the patient will have limited choices. If a person chooses to get help from doctors outside the list, the healthcare construction companies Chicago do not shoulder the expense at all.