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Most Americans get health insurance through their jobs or
are covered because a family member has insurance at
work. This is called group insurance. Group insurance is
generally the least expensive kind. In many cases, the
employer pays part or all of the cost.
Some employers offer only one health insurance plan. Some
offer a choice of plans: a fee-for-service plan, a health
maintenance organization (HMO), or a preferred provider
organization (PPO). Some employers only offer one plan
(and some may not offer any health insurance).
What happens if the employee leaves the job? He
will lose his employer-supported group coverage. It may be
possible to keep the same policy, but he will have to pay for
it himself, and this will cost more than group coverage for
the same, or less, protection.
If an employer does not offer group insurance, or if the
insurance offered is very limited, an individual can buy an
individual policy (or family policy) and get a
fee-for-service, HMO or PPO protection. It is important
to compare and shop carefully because coverage and costs vary
from company to company, and individual plans may not offer
benefits as broad as those in group plans.
Before buying any health insurance policy, one should
understand what it does and does not cover. To find out
about individual health insurance plans, a prospective buyer
can call insurance companies, HMOs, and PPOs in the community.
It is important to make sure the policy covers large medical
costs and that the policy states the date that the policy will
begin paying (some have a waiting period before coverage
begins).
There are many different types of health insurance. Each
has pros and cons. There is no one "best" plan. The
plan that's right for a single person may not be best for a
family with small children. And a plan that works for one
family may not be right for another.
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