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Structuring and Financing Healthcare

In: Social Issues

Submitted By adrodgers
Words 1113
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Financing and Structuring Health Care
Alicia Rodgers
HSA 500 – Health Services Organization
Instructor – James P. Driscoll Jr.
July 24, 2011

Abstract
There are many explanations on how health insurance is financed and structured. In this paper, different types of insured plans are reviewed and broken down to fully understand the design and goal of each policy. Overall, this research is very significant and consistent on the procedures of how these policies were developed. These health insurance plans have their advantages and disadvantages but they all aim as a beneficiary for the purchaser.

According to Merriam-Webster, health insurance is defined as a form of policy that provides compensation for medical expenses and loss through illness. Health insurance can be obtained individually from a provider or through an employer or organization. When purchasing health insurance, the policy holder must pay a premium, which is the amount one pays to health plan to keep coverage.
Identify and describe the three main types of health insurances in the U.S. There are three main types of health insurances in the United States. They include: Indemnities, Managed Care, and Health Savings Accounts (HAS).
Indemnity plans are a fee-for-service plan. It is a flexible insurance that allows the policy holder to choose what physicians, facilities, and services they want. For this plan, the policy holder will pay an annual deductible and the insurance will pay the rest of the bill. For example, the insurance will cover 80 percent and the patient is only required to pay 20 percent which is the copayment. Managed care plans are policies that limit policy holders to a listing of “in-network” providers when seeking care. These plans normally have significantly smaller co-payments and deductibles. HSAs are savings accounts that are tax free. This is a plan where policy holders

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