Deductible

• The deductible is the payment that is made by the insured before health coverage begins to pay for medical costs. A deductible is paid per year and can range from $300 up to $1000 or more depending on the amount that was selected. A higher deductible will generally lower the cost of the health insurance policy.
  
  

Co-Payment

• A co-payment is the amount that an insured pays towards medical services that are provided. Most types of co-payments are known 90/10 or 80/20 depending on the type of plan. This means that an insured will pay either 10 percent or 20 percent of covered costs. The amount of co-payment that is required can vary depending on the selection that was made for the policy.
  
  

Health Maintenance Organizations

• Many health plans include an option for a health maintenance organization or HMO. An HMO is a group of doctors who have agreed to provide care for a set see with low or no deductible payments. An insured that belongs to an HMO can only visit doctors or other providers that are members of their HMO network. Referrals to specialists are done by an individual's primary care physician.
  
  

Preferred Provider Organization

• A Preferred Provider Organization or PPO is similar to a HMO but instead of a set fee services are paid when it is received. This includes paying a deductible or co-payment at the time of service. Some providers may send a bill instead of requiring payment at the office. A PPO also allows individuals to visit a provider that is outside of their specific network. Costs are generally higher for out of network doctors and providers.
  
  

Indemnity Plans

• An indemnity plan, also known as a fee-for-service plan, is a type of health insurance plan in which individuals are reimbursed for certain health costs. This means that an insured pays a bill for from a service provider and then submits a claim to their insurer for reimbursement. A claim will only be reimbursed for services that are included in the policy. These type of plans provide the most flexibility for selecting doctors and providers but generally have a higher deductible.