The rising cost of medical care and the resulting pressure on health insurance premiums makes health insurance top priority if you want to have your health expenses covered at a reasonable cost. The current health insurance system is quite complex and constantly changing. The information below may help answer your questions:

1. Types of Health Insurance: There are essentially two kinds of heath insurance: Fee-for-Service and Managed Care. Although these plans differ, they both cover an array of medical, surgical and hospital expenses. Most cover prescription drugs and some also offer dental coverage.


• Fee-for-Service plans generally assume that the medical professional will be paid a fee for each service provided to the patient. Patients are seen by a doctor of their choice and the claim is filed by either the medical provider or the patient.
• Managed Care plans are the most common type of health care plan. More than half of all Americans have some kind of managed-care plan. Various plans work differently and can include: health maintenance organizations (HM0s), preferred provider organizations (PPOs) and point-of-service (POS) plans. These plans provide comprehensive health services to their members and offer financial incentives to patients who use the providers in the plan.
2. How to pick a health plan: If your employer gives you a choice of plans or you need to purchase your own coverage, it is crucial that you understand your health insurance choices and pick the insurance that is best for you and your family. Here are some questions you should ask yourself when choosing a health insurance plan:
   • What is the monthly premium I will have to pay?
   • Should I try to insure most of my medical expenses or just the large ones?
   • What deductibles will I have to pay out-of-pocket before insurance starts to reimburse me?
   • After I’ve met my deductible, what percentage of my medical expenses are reimbursed?
   • How much less am I reimbursed if I use doctors outside the insurance company’s network?