3. Private health insurance Comparison of plans and providers Aa Aa E 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 Lillian is able to secure health insurance because she is a member of her credit union. This is an example of 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 a health care plan that best suits your requirements. Select the plan that most closely matches each given description. Indemnity plan Managed care plan Insureds are subject to an annual deductible Out-of-pocket costs generally include the plan's deductible and 20% of the plan's covered medical expenses Usually lower premiums The premium represents a prepayment for one's own health care More likely to cover preventative and routine care 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 most value the freedom of choice and am willing to pay for it Cost is my most important consideration I'd rather have the flexibility of either having the insurance company reimburse me or directly paying the health care provider 3. Private health insurance Comparison of plans and providers Aa Aa E 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 Lillian is able to secure health insurance because she is a member of her credit union. This is an example of 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 a health care plan that best suits your requirements. Select the plan that most closely matches each given description. Indemnity plan Managed care plan Insureds are subject to an annual deductible Out-of-pocket costs generally include the plan's deductible and 20% of the plan's covered medical expenses Usually lower premiums The premium represents a prepayment for one's own health care More likely to cover preventative and routine care 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 most value the freedom of choice and am willing to pay for it Cost is my most important consideration I'd rather have the flexibility of either having the insurance company reimburse me or directly paying the health care provider