There are several types of health Insurance you can choose from depending on your preferences, resources and needs.
It is important to be familiar with every option there is when deciding on which health insurance plan to take, so that you could weigh your needs and budget accordingly.
There many types of Health Insurance plans but the two major categories are:

1. Indemnity, Traditional Health Insurance or Fee-for-Service Plans; and
2. Managed Care Plans

Traditional Indemnity Plans Indemnity plans, also called Fee-for-Service or Traditional Health Insurance, have been used by many, especially before Managed Care plans became so popular, because an Indemnity plan allows people to choose their own doctor and hospital.
This feature is very appealing to many because people feel more secure with doctors and hospitals they already trust.
In Traditional Indemnity plans, people would usually pay a smaller percentage of their health expenses, the coinsurance, only after they have paid their annual deductible.
When a person's expenses, however, turned out to be more than the usual expected bills, the person will have to pay the extra expenses plus the coinsurance.
Indemnity plans pay for medical services, prescriptions and medical tests but do not usually cover preventive care expenses.
Managed Care Plans Managed Care Plans have three basic types of plans.
These are:

1. Preferred Provider Organizations (PPOs) - A PPO is a managed care plan that shares some features with the Traditional Indemnity plan.
   In PPO, there are higher and lower charges depending on the person's choices of doctor and hospital.
   A higher coinsurance is charged to people who choose doctors and hospitals that are not part of the plan's network.
   A lower coinsurance is charged to those who choose from the plan's network of doctors and hospitals.
   
2. Health Maintenance Organizations (HMOs) - An HMO is the least expensive health plan.
   Using an HMO limits your options to the company's terms and offers.
   Compared to PPO, HMO does not let you pick a doctor or hospital outside its network.
   In using an HMO you also have to secure your doctor's referral before you  could go to a specialist.
   HMO is cheap and it allows you  to acquire preventive and health improvement care.
   
3. Point-of-Service (POS) - A POS gives you a specific list of doctors and you will have to choose your Primary Care Physician.
   With POS, you have the freedom to choose your hospital, facilities and doctors although choosing from among the network is encouraged.
   However, choosing outside facilities will cost you more than when you get your services from the approved list of doctors and facilities of your POS company.
   In POS, you'll be encouraged to have preventive and health improvement programs.