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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 Amy 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 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 create contract with, and make monthly payments, to the care provider Service providers must meet specific selection standards An annual deductible is incurred A HMO plan is a one example The insurer pays the care provider or reimburses the patient for covered expenses once the deductible has been met