Types of Coverage
HMO (Health Maintenance Organization):
An HMO covers most of your health care needs, including checkups, immunizations and hospitalization, for a small co-payment, typically between $5 and $40. There are no claim forms with an HMO; however, you can only go to doctors and hospitals affiliated with your plan. A list of affiliated physicians is provided by the HMO.

EPO (Exclusive Provider Organization):
An EPO functions in much the same way as an HMO. but is even more exclusive

PPO (Preferred Provider Organization):
PPOs cover many of your health care needs for a small per-visit fee if you choose from the list of preferred providers. You can choose to see a doctor who is not on the list, however, you will be responsible for a greater portion of the bill and may have to pay a deductible. Some PPOs do require claim forms.

POS (Point of Service):
A POS plan offers you two choices each time you use health care services. One choice is to use the plan as an HMO in which case you are responsible for a nominal co-payment; you must choose your physician from a list of participating physicians; and you must obtain authorizations for certain services and referrals to specialists. Your other choice is to use your health plan like an indemnity plan by choosing care from either a participating or non-participating provider, without coordinating care through your primary care physician or health plan. In this choice, you are generally responsible for a deductible and a percentage of your bill.

Indemnity Insurance (also called Fee-For-Service):
You are probably most familiar with this traditional insurance coverage. It pays for most of your expenses resulting from illness or accident, but does not usually pay for preventive care, such as well-child visits and physical exams.

Indemnity insurance doesn't cover the total cost. Coverage is usually limited to a percentage of the billed amount and only begins after you've met your deductible, which is a yearly, fixed amount of expenses. Under an indemnity plan, you can see any doctor or hospital you want, but the monthly premium is usually higher than other types of health plans.