HSA 500 Paper #2

Eric Tompkins

Dr. Robert Lindsey

Health Service Organization

February 17, 2013

1. Compare the three (3) main types of health insurance in the U.S. and assess the solvency of each. Make a prediction regarding the longevity of each type over the next 30 years. Health insurance is essential because it provides people with an affordable way to stay healthy and get medical care when ill. It also protects people and their families from the high cost of health care. In some cases, medical bills can be financially devastating. The likelihood of no insurance is a real risk to many workers who may experience either phases of unemployment or jobs that do not provide health insurance benefits at all.The three most common forms of health insurance plans are fee-for-service, managed care, and consumer directed. Fee-for-service plans mean the doctor or other health care professional will be paid a fee for each health care service provided to the patient. Patients can see the doctor of their choice and either the health care professional or the patient files the claim ("Health insurance 101," 2012). There are two kinds of fee-for-service coverage: basic and major medical. Basic protection pays toward the costs of a hospital room and care while you are in the hospital. It covers some hospital services and supplies, such as x-rays and prescribed medicine. Basic coverage also pays toward the cost of surgery, whether it is performed in or out of the hospital, and for some doctor visits. Most fee-for-service plans have a "cap" or limit on the amount you pay for medical bills in any one year. The insurance company pays the full amount in excess of the cap for the items covered under your policy - not including your monthly premium payments ("Fee for service," 2012). Many experts point to the outdated