Health Insurance can be divided into two categories:

1. Traditional or Free-for-Service health insurance
2. Managed care health insurance

Traditional Health Insurance or Free for service health insurance

The traditional indemnity coverage dominated the health insurance market and almost every one was crazy about traditional health insurance. The recent term of traditional health insurance is Free-for-service health insurance. It’s more like a commodity insurance wherein you pay for the health insurance in advance and the health insurance company pays the majority of the bills.

The recent advances in the field of medicine had made it impossible for the health insurance companies to cope up with the increasing health care expenses. The health insurance companies gave a rethought to the health insurance medical expenses and thus came up with new health insurance policies.

Managed Care Health Insurance Plan
The medical care health insurance plan provides extensive and comprehensive medical services to their customers and also provides financial incentives to those insured who plan to use the medical care providers list. There are three sub plans in the managed health insurance plan. These are:

• The PPO Plan or the Preferred Provider Orgnisation Read More..
• The HMO Plan or the Health Maintenance Organisation Read More..
• The POS Plan or the Point of Service Plan Read More..