For example, if the insurance company pays 80 percent of the claim, you pay 20 percent. Another way of sharing medical costs with your health-insurance provider. The insurance company pays the rest. The amount of money you must pay each year to cover your medical-care expenses before your insurance company starts paying. This is the traditional kind of health-care policy, also called an indemnity plan.
Insurance companies pay fees for the services provided to the people covered by the policy.
You can choose any doctor or hospital you wish and change doctors any time. Prepaid health plans. You pay a monthly premium and the HMO covers your visits to the doctor, hospital stays, emergency care, surgery, checkups, lab tests, x-rays and therapy. Obtaining care without a primary care physician's referral, or obtaining care from a non-network member, usually results in no payment for services by the insurance company. Insurance companies pay fees for the services provided to the people covered by the policy.