ANSWERS: 1
  • 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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