| Term group plan means that all the employees must | | | | In health maintenance organization (HMO) you have |
| compulsorily accept the coverage despite of physical | | | | to pay a monthly fee called a premium. But you can't |
| condition. Usually the employee has to pay the first | | | | choose a licensed doctor of your choice in this type |
| premium within 30 days of employment or he will be | | | | of health insurance. The health insurance company |
| forfeited from the right to automatic coverage. | | | | has a huge number of physician networks who |
| Group health plans include employer sponsored ERISA | | | | provide a wide variety of medical benefits. From this |
| plans - both insured and self insured and non- ERISA | | | | network, you choose a primary care physician who |
| plans such as church plans. Group insurance is | | | | will take care of your health related problems. The |
| generally the least expensive kind. Some organizations | | | | choice of doctors and hospitals are limited those |
| offer only one health insurance plan and others offer | | | | within the network since they have agreements with |
| a variety of plans like indemnity plan, health | | | | the HMO to provide your health care. The health care |
| maintenance organization (HMO), or a preferred | | | | services generally require you to make a co-payment. |
| provider organization (PPO). This type of group health | | | | If the HMO is efficient and keeps its members |
| insurance is famous in California. | | | | healthy, it will make a profit. But if there are too |
| Indemnity health insurance plans gives you the | | | | many members who need care its profits are smaller |
| benefit of choosing a licensed doctor of your choice | | | | or it may lose money. |
| and then pay him for the services at the time of the | | | | Preferred provider organizations are made up of |
| visit. To receive payment for medical expenses you | | | | physicians, hospitals, or other providers which provide |
| have to fill a form and send them to insurer. | | | | health care services at a reduced fee. PPOs offer |
| Sometimes your doctor may do this for you. You | | | | more flexibility by allowing members to meet a |
| also have to keep receipts for prescription drugs. If | | | | licensed doctor who are out of network at a greater |
| you want this type of insurance you have to keep | | | | expense to the policy holder. But if visits are made |
| track of all your medical expenses. This type of plan | | | | within the network it requires only a small fee. There |
| is mostly found in rural areas. Certain features include | | | | is often a deductible for out of network expenses |
| your choice of deductibles, coinsurance levels, | | | | and a higher co-payment. |
| maximums and benefit levels. | | | | |
