Healthcare Plans: An Overview

Today, consumers looking for Texas health insurance can choose from network-based coverage, non-network based plans, and consumer-directed health coverage. There have been many advances in the health care system, which have resulted in an emphasis on the role of consumers as managers of their health care and finances. In addition, more information is available to physicians, physician groups, and hospitals to assist consumers and employees in selecting a plan.

Traditional health insurance known as indemnity insurance is a fee-for-service plan. This coverage was very common in the 1970s. Under indemnity insurance, the medical provider is paid on a basis of services provided. A patient can choose which doctor they would like to see, and then they will submit a claim to the insurance company to be reimbursed for incurred costs. The reimbursement amount will depend upon the company’s coinsurance and deductible policies.

Over the years, health care has shifted towards managed care plans. The most popular types of managed care coverage available are a health care maintenance organization (HMO) and preferred provider organization (PPO).

Medicare and Medicaid are two government programs which provide health insurance coverage. In order to qualify, one must be of a certain population such as seniors, families with low income, or disabled. Even if one qualifies for this coverage, there are additional plans available to improve coverage such as long-term care insurance or disability insurance.

If you are looking to invest in a Texas health insurance policy, visit Option 1 for help in finding a plan which is affordable while offering the best benefits.