Private health insurance is a kind of health insurance options available to United States citizens. Typically, private health insurance is of two types, whuch includes health care and indemnity health plans. With these plans, you have the opportunity to decide, whether you will go for health coverage at a reasonable cost or the flexibility to control medical care decisions.
Health Care Plans
Such kind of healthcare plans are managed and aimed for those people who want to have quality care at an affordable price. Managed healthcare insurance consists of three plans: HMO (health maintenance organization), PPO (preferred provider organization) and POS (point of service). The nature of all these plans is different, but provides cost-efficient health care by offering a participant with a network of physicians. The participants of the plan can enjoy medical care at a contracted price. The insured can benefit from low out-of-pocket costs if he uses the services in-network. You may have to pay higher co-payments, deductibles and coinsurance in case, you do not use the services within network. In many cases, you will be responsible for the entire bill even while insured, if you do not use the service within network .
Indemnity Health Plans
Indemnity health plans reimburses the insured for services received, only when the insured files a claim. It comes with three options, two of which are similar reimbursement plans. One option will pay 100 percent of the claim, while another option depend on the bill and it pays about 80% of the bill. For paying the remaining balance, you will be responsible. If you are opting for the third option, you will get a specific amount of money for services of a day for a maximum number of days. With this plan, you will get maximum flexibility of all private health plans and can get treatments for doctor regardless of location. This is the most expensive plan, and it requires the insured to complete the claims accurately and to submit them in time, or else the insured may need to bear the entire bill.
Benefits of the Private health insurance plans
Private health insurance plans come with several benefits. First, you can have a peace of mind knowing that you can properly control your plan and any changes in terms of agreement will be done with your consent. Moreover, with this insurance plan, you can customize it, in order to include services that you want to pay for and eliminate those that are not needed. You can also keep your insurance plans accordingly, no matter, where you move or change jobs. More than that, a private health insurance plan can also give you incentives for joining health clubs or using alternative health treatments.
However, such plans also come with some disadvantages. The most significant problem of such plans are the payment for the premiums, which are rising at a tremendous rate (12 percent annually). In many cases, the applicant may be denied of coverage due to current medical status or a pre-existing condition.