The Different Types of Mega Health Insurance
Michalis 'BIG Mike' Kotzakolios


Defined Tag: Mega Health Insurance.

Health insurance is a necessity. Some people make the mistake of declining mega health insurance coverage. They justify it with the notion that they are healthy, never see the doctor, and don't have any major health issues. Unfortunately, no one knows what the future holds in terms of health, making mega health insurance necessary.

Typically, there are three types of mega health insurance in the United States.

First is the self-insured. It's estimated that roughly 30% of the population in the US fall into this category. Self-insured individuals and families are those that fund their mega health insurance entirely out of their own pockets. They receive no assistance from an employer for payment of their premiums. They might, however, qualify for tax breaks. This group also includes uninsured persons; that is, people with no mega health insurance coverage whatsoever.

The second type of mega health insurance is the managed care plan. A managed care plan is a plan that offers the services of a network of affiliated health providers. Utilizing health providers within the network allows the participant contracted prices.

Within the managed care plans of mega health insurance, there are three categories: Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Point of Service (POS).

HMO members pay a monthly fee. No matter how much or how little medical care the participant requires, the fee does not fluctuate. HMOs usually require that members utilize health care providers within the HMO network. HMO members must select a primary care physician when electing for mega health insurance.

PPOs offer more flexibility than HMOs. PPOs will allow members to venture outside the health provider network without requiring referrals from the primary care physician. PPOs encourage members to stay within the network by offering small co-pays. If venturing outside the network, costs must be paid in advance and a percentage will be reimbursed by the PPO.

POS plans are not as common. These plans are hybrids of the HMO and PPO. There is a network of providers and members can venture outside it. If that is the case, payment for services rendered is collected at the time of service, and the POS reimburses the member.

The third type of mega health insurance is an indemnity plan. Members of indemnity plans can seek medical services from any health care provider they wish. There are no strict rules with indemnity plans. The downside is the cost: these are the most expensive of all mega health insurance plans.

Which of these are best for your situation? If you're self-employed, you might not have much choice but to select a self-funded plan. If you're employed and you can stay with one primary care physician without needing to venture outside a network of providers, an HMO might be a good choice. Consult with your Human Resources benefits representative to evaluate your needs.

BIG Mike is a well known author, developer and Adsense expert as well as the owner of Niche Maniacs - a unique Adsense Marketing System designed to build long-term passive income streams from Adsense, YPN, Chitika and other PPC services.