The health insurance market varies pretty drastically. However, most plans pay in one of two ways. 1. Managed Care Plans: Can include health maintenance organizations (HM0s), preferred provider organizations (PPOs) and point-of-service (POS) plans. These plans provide services to their members and offer financial incentives to patients who use the providers in the plan network. 2. Fee-for-Service Plans: These plans generally assume that the medical professional will be paid a fee for each service provided to the patient. Patients are seen by a doctor of their choice and the claim is filed by either the medical provider or the patient.