With so many different companies and plans available, it is important to understand major differences for available health care. Essentially, medical insurance in America breaks down to two categories–public health care and private insurance. Within the public health care umbrella lie 2 very different programs– Medicare and Medicaid. It is important to recognize the differences of Medicaid and Medicare because they serve two entirely separate purposes. Private health care can be extremely complicated but also essentially breaks down to two components–indemnity insurance and managed health care plans. Indemnity insurance is less common while managed health care plans, which include PPOs, HMOS, and more, are growing steadily in popularity. As the graph below states, between 2007 and 2008, enrollment for private health care dropped while public health care participants grew.
Private Health Care recipients are required to pay a premium for their services, while Medicare Part A and Medicaid recipients are not required to pay any premiums. Medicare Parts B, C, and D all include premiums and are sometimes managed by private insurance companies (but still operate under federal guidelines).
One extreme difference between private insurance and public health care lies in eligibility based on health. Public health insurance and employer sponsored health care programs must insure all eligible applicants while private companies can deny coverage if they find an applicant to be “too high risk”.
It is important to understand the differences between health care plans which can often become complicated or change periodically. For information regarding Medicare in Texas or Medicare in Wisconsin, or simply questions or inquires about anything listed on our website, feel free to contact us or comment below.
*information gathered from the US Census Bureau