Health Maintenance Organizations (HMOs)
Preferred Provider Organizations (PPOs)
Fee-for-Service or Traditional Indemnity Plans
Point of Service (POS)
High Deductible Health Plans (HDHPs) and Health Savings Accounts (HSAs)
Self Insured VS Fully Insured
Fully insured health plans are typically group health insurance plans in which an employer or company pays the health insurance premiums for coverage. Insurance companies that provide the group health insurance plan for an employer set the premium rates each year. Fully insured plans have many characteristics that make them different from other types of health insurance plans. These include pooling, risks, premiums, and employer size.
Self-insured plans, unlike fully insured plans, are generally designed in which the sponsor retains the risk associated with paying covered health expenses, rather than paying a premium and transferring the risk to an insurance company. Some sponsors retain the risk for a subset of the benefits, but transfer the risk for the remaining benefits to health insurers – that is, they finance the plan’s benefits using a mixture of self-insurance and insurance. Self-insurance is more common among larger sponsors, mainly because the health expenses of larger groups are more predictable, and therefore larger sponsors face less risk.