Hassle-Free Health Coverage: Insurance Companies, Etc.

Most life and health insurance companies market both group and individual hospitalization coverage.

There are also service organizations, such as Blue Cross/Blue Shield, that provide prepaid medical and health benefits in accordance with state laws that recognize them as not-for-profit organizations and exempt from state premium taxation.

The only difference between the two is that commercial insurers have a contractual relationship with you, and service organizations have a contractual relationship with providers. With a service organization, you use the services of the contracted doctors or hospitals -- participating providers -- and claims are settled directly with the providers.