What Are the Different Kinds of Health Insurance?

Managed care health insurance plans provide medical insurance for individuals at reduced costs, according to Medline Plus. Under managed care health plans individuals must use only doctors that are within their insurance company's healthcare network. Understanding the different types of health insurance will help you determine which type of health insurance is right for you or your family.

Health maintenance Organizations

• Health maintenance organizations only pay for doctors found within their network, according to Medline Plus. If a doctor is not covered by your insurance plan you cannot use him if you want your insurance company to help pay the cost of medical services. Doctors join health maintenance organizations or networks in exchange for receiving health care referrals from the insurance company, according to the American Heart Association. Sometimes health maintenance organizations will pay for medical services when visiting a doctor or hospital is deemed an emergency. Under HMO plans individuals must select a primary care physician (PCP) that's responsible for authorizing all medical care for the individual. Individuals are only allowed to see a specialist if it's deemed necessary by their primary care physician. HMO health care plans are considered the most restrictive type of healthcare plan because individuals have less of a choice when it comes to visiting specialists. However, HMO plans typically have lower or no co-payments than other types of healthcare plans.

Preferred Provider Organizations

• Preferred providers organizations provide medical coverage for doctors within their healthcare network as well as doctors outside of their network, according to Medline Plus. However, preferred provider organizations will usually cover more when individuals use doctors within their network. Preferred provider health plans do not require individuals to have a primary care physician as they do with HMO plans, according to the American Heart Association. If individuals see a doctor outside of their network they could have to pay as much as 50 percent of the total bill.

Point of Service

• Point of service plans allow individuals to choose between preferred provider plans and health maintenance plans each time they need medical care, according to Medline Plus. Point of service health care plans are often referred to as HMO/PPO hybrid healthcare plans or open ended HMOs, according to the American Heart Association. Point of service health care plans do not require, but recommend individuals to choose a primary care physician. Point of service plans are becoming extremely popular because they provide more flexibility than other types of healthcare plans.