Main > Insurance Tips

The three types of health insurance plans.

Health insurance plans come in three types. The first is the discount medical plan. A discount medical plan is much cheaper but doesn?t offer comprehensive major medical coverage. The only real connections to traditional health insurance are some ambulatory services and potential discounts on catastrophic illnesses. The second is a fee-for-service plan. This type of plan is the most comprehensive and offers the most choices. The third type of health insurance is a managed care plan. These plans are better known as HMO (Health Maintenance Organization) plans or PPO (Preferred Provider Organization) plans. Only fee-for-service plans and managed care plans cover comprehensive medical, surgical, and hospital expenses. Discount medical plans are designed to lower the cost of medical related expenses. Discount medical plans are generally for those individuals and families who cannot qualify for traditional fee-for-service or managed care health insurance plans.