HMO Plan

• The cheapest of the three managed health care plans, an HMO (health maintenance organization) plan, is also the most restrictive. A member of an HMO plan is assigned to a network of contracted physicians in their geographical area. The insured are required to choose a primary care physician from the pool of doctors who will act as a "gatekeeper" and coordinate the insured's medical care. When visiting the primary care physician, the insured patient's out-of-pocket expenses are minimal, requiring no deductible and a small co-pay. If the patient needs to see a specialist, a referral is needed from their physician in order to receive coverage from the insurer. If there is no referral, the insured is responsible for the entire medical bill, except for medical emergencies.
  
  

PPO Plan

• A preferred provider organization (PPO) plan provides the most flexibility among the managed health care plans. The member has a network of doctors to receive care from but a primary care physician is not required. The member can see a doctor in or out of network without prior approval. However, the insurer offers their members incentives such as lower deductible and co-pay amounts if they keep their medical care in network. If the member decides to visit a non-network doctor, they could be required to pay 50 percent of the medical bill.
  
  

POS Plan

• A point of sale (POS) plan, which is becoming the most popular of the three, is a blend of the two other managed-care health plans. Like an HMO, there is a network of physicians that are assigned to the member. Choosing a primary physician is not required, however it is strongly recommended. Having a primary physician will lower out-of-pocket expenses when patients seek treatment or when they receive a referral to see another doctor. If patients decide to visit an in-network doctor without a referral, they will still receive coverage, but their co-pay or deductible amounts will be higher. Like a PPO, a POS member has the opportunity to visit any doctor of their choice without prior approval, but seeking non-network care will substantially raise their out-of-pocket expenses.
  
  

Indemnity Health Plans

• Considered a traditional health plan because it is the oldest health policy offered, indemnity health plans provide coverage by reimbursing the insured when they file a claim after receiving medical care from a physician. This plan provides maximum freedom as the insured can seek medical attention from a medical facility regardless of their location. There are three options under the indemnity health plan. Two are similar reimbursement options. One pays a percentage, around 80 percent of the medical bill. The other option will pay up to 100 percent of the medical claim. A third option pays the insured a specified amount a day for a maximum number of days. These plans are expensive and in some instances, the insured can be required to pay the bill upfront before any reimbursement can be paid out.
  
  

Medicare/Medicaid

• These two national plans cover citizens who meet the criteria set forth by the government. For Medicaid, this plan covers those who are poor or have a disability. Applicants must meet income level guidelines or the definition of a disability set by the state in which they live. Medicare is a health care program aimed to provide coverage to people older than age 65. There are two main parts in this plan. Part A is free to anyone under the Medicare plan and it covers services such as hospice care and hospital visits. Part B provides coverage through a monthly premium and it covers outpatient care, doctor visits and some medical services that are not covered under Part A.