On the other end of the spectrum are indemnity or fee-for-service plans. These plans allow you to go to any doctor or facility and pay a percentage of the actual billed fees.

In between those two plans are Preferred Provider Organization plans (PPO) and Point of Service (POS) plans. PPO plans have contracts with doctors and hospitals to provide services at a discount from their normal fees, and the plan pays a percentage of these discounted rates. If a participant uses a doctor outside of this network -- referred to as going out of network -- the plan will pay a percentage of reasonable and customary fees, which are rates that most doctors in the area will charge for the procedure, and which are generally higher than the in-network discount rates. The doctor may bill you for the balance or difference between his fees and what the plan will pay. The POS plan is an HMO plan that allows you to access care from a non-HMO network provider. You select the level of benefit when you access services by choosing care from an HMO provider or a non-HMO preferred provider. The level of managed care and payment for services will depend on your choice of providers.