Kids and Health Care: What is "Health Coverage"
The term health coverage refers to a collection of insurance policies and government programs that pay for a range of costs -- from doctors and hospitals to more particular needs, such as preventive medicine, alternative medicine and specialties like dental care, vision care and mental health care.
When people refer to health insurance, they usually mean group insurance offered by employers -- insurance that covers such things as medical bills, surgery and hospital expenses. Insurance companies call this comprehensive or major medical coverage, because of the broad protection it offers.
Health coverage includes insurance policies and government-provided benefits. Most consumers are familiar with some of these. The terms fee-for-service and managed care appear just about everywhere. The specific kinds of managed care plans -- health maintenance organizations (HMOs), preferred provider organizations (PPOs) and point-of-service (POS) plans -- are also fairly common. But what do these terms mean?
Both fee-for-service and managed care plans cover an array of medical, surgical and hospital expenses. Most offer some coverage for prescription drugs; and some even include coverage for dentists and other providers. But because there are differences that will make one or another plan right for you, it is important to know how each plan works.
