3. Private health insurance - Comparison of plans and providers In the United States, private health insurance plans can be written as group or individual plans, or as indemnity or managed care plans. Comparing Private Insurance Plans Alison purchases health insurance coverage for herself and her family members. This is an example of a group insurance plan. Indemnity, or fee-for-service, plans and managed care plans cover medical expenses if you are sick or injured, but in different ways. The following questions examine the general differences between the two plans. Taking a closer look at how these plans provide coverage will help you begin to customize health care plan that best suits your requirements. Select the plan that most closely matches each given description. Indemnity plan Managed care plan Insureds create contract with an insurer who does not provide health care services The higher the deductible, the lower the premium O 0 Insured receive health care services from a designated group of providers O O May not even involve an insurance company No annual deduction is incurred, but a small co-payment may be required Now that you've taken a closer look at the differences between these types of plans, consider the following statements. Each indicates common preferences and situations. Select the type of plan to which each statement most closely aligns. Now that you've taken a closer look at the differences between these types of plans, consider the following statements. Each indicates common preferences and situations. Select the type of plan to which each statement most closely aligns. Indemnity plan Managed care plan I'd prefer to pay a small copay rather than a larger deductible. My family history strongly suggests I'll suffer serious and perhaps unique illnesses as I age. I prefer the flexibility of increasing or decreasing the size of my deductible to influence the cost of my health care insurance. There are several types of managed care plans, including group health maintenance organizations (group HMOs), individual practice associations HMO (IPA HMOs) preferred provider organizations (PPOs), exclusive provider organizations (EPOs), and point-of-service (POS) plans. Deciding which particular type of practice would best meet your needs requires knowing the major characteristics of each. Identify the particular form of private health care organization or plan described by the following three clues. Clue #1: I'll see all of the doctors and medical professionals in my plan by visiting them at a central facility. Clue #2: To receive the covered medical services, I'll pay a monthly fee and a small copay for each visit to the doctor or prescription. Clue #3: Many of these plans now allow me to obtain medical services from doctors or facilities located outside my plan's geographic area. If I want my plan to exhibit these characteristics, then I should purchase Clue #1: I'll see all of the doctors and medical professionals in my plan by visiting them at a central facility. Clue #2: To receive the covered medical services, I'll pay a monthly fee and a small copay for each visit to the doctor or prescription. Clue #3: Many of these plans now allow me to obtain medical services from doctors or facilities located outside my plan's geographic area. I want my plan to exhibit these characteristics, then I should purchase a PPO an IPA HMO an EPO a group HMO