What are the types of commercial health insurance?

A. Commercial health insurance can take several different forms. These are “indemnity” or “fee-for-service”, the kind most people used to have; and the three major new forms: health maintenance organizations (HMOs), preferred provider organizations (PPOs), and point-of-service plans (POS), which are more common now. New types of insurance are continually being developed, but most are variations or combinations of these four types of insurance. • “Indemnity” or “fee-for-service” insurance: covers a defined set of services or benefits. Clients can go to any doctor or other health care provider he/she chooses. Indemnity plans may be comprehensive or may only cover a limited set of benefits. Some, for example, only cover hospital costs. • Health Maintenance Organizations (HMOs): must provide a minimum set of services required by New York State. Nearly all HMOs require the client to choose a “primary care provider” or “PCP”, who will take charge of his/her health care. The client will ...  more