A health maintenance organization employs health care professionals to provide services in exchange for a fixed, prepaid monthly premium. HMOs operate on the premise that maintaining health through preventive care will minimize future medical problems. A preferred provider organization is a group of doctors and hospitals that agree to provide health care at rates approved by the insurer. The premiums for PPOs are slightly higher than those for HMOs. The combination of low fees and some free choice of physicians makes PPOs very popular.
Members select a primary care physician who controls referrals for medical specialists.
Blue Cross and Blue Shield are state organizations similar to commercial health insurance companies. Blue Cross plans provide hospital care benefits, and Blue Shield plans provide benefits for surgical and medical services performed by physicians. Traditional indemnity plans are generally the most costly of all the health insurance options. With this insurance you have complete freedom to select your physician and hospital. Medicare is a federal health insurance program for people 65 or older, people with permanent kidney failure, and people with certain disabilities.