There are two types of heath insurance: Fee-for-Service and Managed Care. Both provide comprehensive health services to their members and cover a wide area of medical, surgical and hospital expenses. Most cover prescription drugs, and some also offer dental coverage.
Under these plans, the medical professional is 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.
There are several types of managed care plans, including: health maintenance organizations (HMOs), preferred provider organizations (PPOs) and point-of-service (POS) plans. Managed care plans offer financial incentives to patients who use the providers specifically named in the plan. More than half of all Americans have some kind of managed-care health plan.