Health care in America is changing at an astonishing rate. Twenty-five years ago, most people in the USA had indemnity insurance coverage. A person with indemnity insurance could go to any physician, hospital, or other provider. They would receive a bill for services rendered, and the insurance company and the patient would each pay a percentage of the bill according to the policy.

The cost of medical services today has made indemnity health insurance largely a thing of the past. Today, a majority of Americans who have health insurance are enrolled in some type of managed care plan. Different types of managed care plans work differently and include preferred provider organizations (PPOs), health maintenance organizations (HMOs), and point-of-service (POS) plans.

It is important to understand the type of coverage you have, and  what is required to get and maintain your health plan coverage.  The more you learn, the more easily you'll be able to decide what fits your personal needs and budget.

Choosing a health plan is not as easy as it once was. Although there is no one "best" plan, there are some plans that will be better than others for you and your family's health needs. Plans differ, both in how much you have to pay and how much of the medical services costs you will be responsible for. Generally the higher you cost responsibility for medical services rendered, the lower your monthly premium. No plan will pay for all the costs associated with your medical care. Some plans will cover more than others. There is also a difference in plans when it comes to access to medical physicians and service providers. Some plans provide a larger network of physicians and hospitals then others.

There is a general agreement among those in the industry that Americans tend to over use or miss use their medical benefits. Almost all plans today have ways to reduce unnecessary use of health care and in doing so, help keep down the ever rising health care costs. This may affect how easily you get the care you want, but should not affect how easily you get the care you need.

Health insurance plans are usually described as either indemnity (fee-for-service) or managed care. These types of plans differ in important ways that are described below. With any health plan, however, there is a basic premium, which is how much you or your employer pay, usually monthly, to buy health insurance coverage. In addition, there are often other payments you must make, which will vary by plan. In considering any plan, you should try to figure out its total cost to you and your family, especially if someone in the family has a chronic or serious health condition.

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