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A health insurance plan, or health insurance policy, helps pay for medical expenses for the person covered by the plan. The insurance plan provider pays a percentage of the costs, the amount of which depends on the terms of the plan.
Premiums
Individuals pay premiums to the insurance provider for the health insurance plan. The premium is the fee that the insurance company charges for the insurance plan.
Availability
Health insurance plans are offered through employers, privately through insurance companies and by the government.
Types
Types of health insurance plans include fee-for-service, which can pay 80 percent of medical expenses. Other types include health maintenance organizations (HMOs), which offer a fixed price as long as specified doctors and hospitals are used, and preferred provider organizations (PPOs), which offers lower prices for plan members.
Companies
Health insurance plans are sold by insurance companies such as Blue Cross Blue Shield, Aetna Health Insurance, United HealthCare and Humana.
Self-Insurance
Self-insured health insurance plans are offered by employers. In a self-insured plan, part of your medical expenses are paid by your employer, rather than an insurance company, according to the terms of the plan.
Source:
Entrepreneur: Health Insurance
Insurance Information Institute: What Are My health Insurance Choices?
Insure U: Health Insurance FAQs
More Information:
University of Illinois Extension: Understanding Insurance Terms
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