These are state-regulated health plans that generally offer coverage to individuals (such as self-employed people) or to small groups (such as businesses with fewer than 50 full-time employees). With insured plans, the risk is taken on by the insurance company, which pools premiums paid by their customers and uses the money to pay claims, provide benefits, invest in their business and make a profit for shareholders.
What Is a Point of Service (POS) Plan?
What Is a Preferred Provider Organization (PPO)?
What Is a Health Maintenance Organization (HMO)?
What Is a Self-Insured Health Plan?