Different Healthcare Plans
- Health care coverage provides needed financial protection against the high costs of medical care. Coverage typically takes the form of a health care plan that's designed to pay a percentage or portion of medical costs incurred. The different types of health care plans available can accommodate a wide variety of occupations, lifestyles and financial circumstances.
- Individual health care plans offer a form of protection for individuals who are in between jobs or self-employed and also provide family coverage. Coverage plans are purchased directly from the insurance company, according to AsapQuotes, an insurance reference site. Insurers typically require applicants to take a full physical examination and provide a complete medical history. This information enables insurers to determine the level of risk to assign to a policyholder. The level of risk assigned determines a person's premium rate level and deductible requirements. Individual health care plans can exclude or include any type of coverage such as hospital, office visits and preventative care; however, someone with a preexisting or chronic condition may have certain restrictions placed on his coverage. Individual health care tends to be expensive due to the degree of risk the insurer assumes when covering a single policyholder.
- Group health care plans are most commonly issued as employer-sponsored plans, but other groups such as fraternal orders and churches can also sponsor group plans. Unlike individual coverage, group plans use a single policy to cover a group of people, according to AsapQuotes. Premium rates and coverage benefits are based on group factors, such as average age and occupation. Group health care plans typically cost considerably less than individual plans since the insurer can spread the overall risk across a large pool of people. Plan types include fee-for-service, which is one of the more expensive coverage types, and managed care plans. Managed care plans require participants to stay within an assigned network of providers to reap the full cost benefits.
- Government-sponsored health care plans provide health insurance coverage for individuals who meet certain eligibility requirements. Two large-scale plans issued by the government include the Medicare and Medicaid programs. According to Social Security Online, Medicare health coverage is designed for people who've retired from the workforce, people affected by a disability and people suffering from end-Stage renal disease, or kidney failure. Health coverage provided through the Medicaid program is designed to assist low-income families and children, disabled individuals and individuals over the age of 65. Both Medicare and Medicaid are issued by the federal government; however, Medicaid is administered at the state level, so eligibility requirements can vary from state to state.
