| A family health insurance policy is a legal, binding | | | | cost less out-of-pocket for the consumer. The |
| contract between the insurance company and the | | | | paperwork is generally taken care of by the |
| customer, in this instance a family, whereby the | | | | health care provider instead of the policy holder, |
| insurer pays the medical costs of the family | | | | and the care is covered with only a small |
| member if he or she becomes sick due to | | | | coinsurance or co-payment required from the |
| covered causes, or due to accidents. This type of | | | | policy holder. |
| insurance is generally purchased year by year | | | | There are three types of managed-care plans: |
| with generally no assurance that the policy can be | | | | health maintenance organizations (HMO), preferred |
| renewed, and if renewable, no guarantee that | | | | provider organizations (PPO), and point of service |
| premium rates will not increase. | | | | (POS) plans. These options are all based on |
| Deciding which plan is just right for you and your | | | | provider networks and require their policy holders |
| family can seem as challenging as judging which | | | | to pay for their health care depending on their |
| new car is the very best out of an entire parking | | | | tendency to seek care from in-network or |
| lot at the car dealership. The cars are all different | | | | out-of-network providers. |
| sizes, styles and colors, and the health insurance | | | | Managed care plans were first initiated during the |
| plans all offer different fees, types of benefits, | | | | mid 1980's as a means of cost savings. As late as |
| and levels of coverage. | | | | 1990 the vast majority of family health insurance |
| For many people, the group health insurance plan | | | | was in the form of a conventional plan. By the |
| sponsored by their employer offers them the | | | | year 2001, conventional plans had shrunk to |
| most affordable coverage. This insurance is | | | | merely 7% of the family health insurance in force, |
| exactly what it sounds like: a health insurance plan | | | | with the other 93% some form of managed-care. |
| or plans offered to groups of people through their | | | | In each of the three categories, there are dozens |
| employers. Family plans, on the other hand, | | | | of available plans offering different levels and |
| covers families instead of employer groups, and it | | | | types of coverage that allow users to choose |
| can be a much more attractive and affordable | | | | based on personal needs. In general the higher the |
| option than many people assume. | | | | deductible, the lower the monthly premium. This |
| Because family health insurance is not offered | | | | along with many other factors affects how much |
| through an employer, those who choose this type | | | | the plan will cost the consumer to use. Therefore, |
| of insurance will pay the entire cost of the regular | | | | a family who expects to seek health care only a |
| premiums. In some situations, the purchaser may | | | | few times per year will benefit by choosing a plan |
| even be able to save money compared to what | | | | with a lower monthly premium. |
| he would have spent in premiums for an | | | | These are not the only factors that should be |
| employer's group plan. Either way, consumers | | | | considered when choosing an insurance plan. |
| should realize that the money they're spending | | | | Someone who travels often may want to |
| each month for insurance premiums is 100% | | | | consider the possibility of needing to seek care |
| tax-deductible. | | | | while far from home and the advantages of an |
| There are two basic types of family health | | | | indemnity or a more flexible managed-care plan, |
| insurance plans: indemnity and managed-care. An | | | | so that unexpected out-of-network expenses can |
| indemnity plan gives its policy holders the most | | | | be covered. Women who expect to become |
| freedom to choose the source of their health | | | | pregnant during their plan year must carefully |
| care, allowing them to receive treatment | | | | study the coverage offered to them. Pregnancy |
| wherever and from whomever they choose. | | | | and delivery costs can be substantial. No plan is |
| Many indemnity plans also require higher | | | | right for everyone; that's one reason there are so |
| deductibles that must be met before the plan | | | | many from which to choose. |
| coverage will begin, and they also pay claims | | | | There is no way to make a wise choice without a |
| based on a percentage of the cost for the care. | | | | thorough study of the health insurance plans |
| Managed-care plans, on the other hand, are usually | | | | available. The needs of every person in the family |
| based on a network of approved health care | | | | who will be covered by the plan should be taken |
| providers from whom their policy holders can | | | | into account. With careful consideration and |
| receive treatment. Because this network of | | | | planning, those needs can all be met at a |
| providers has, in most cases, agreed to provide | | | | reasonable cost through family health insurance. |
| the treatment at a pre-set price, the care will | | | | |