How do health expenses get paid?

The method of payment for an insured's health care expenses varies from policy to policy. Under the reimbursement method, the insured is reimbursed the total dollar amount of expenses, after allowing for deductibles, co-payments and any policy maximum.

The cash payment method is common with Accidental Death and Dismemberment policies. The insured gets paid a specified dollar amount depending on the medical procedure performed.

Under the service benefit payment method, the insurance company pays money directly to the health care provider or the provider gets paid directly in advance. The insured pays a monthly premium to the insurance company. This is common with HMOs.

For informational brochures on a variety of insurance topics, see http://www.insurance.state.mo.us/consumer/info/publictn.htm.

Brenda Procter, M.S.,  Consumer and Family Economics, College of Human Environmental Sciences, University of Missouri-Columbia

If you'd like to learn more about this and other personal finance topics, the University of Missouri offers 'Personal & Family Finance,' a correspondence course, through the Center for Distance and Independent Study (800-609-3727). Information about this course is available at http://cdis.missouri.edu/CourseInfo/DetailCourseInfo.asp?1985.

Last update: Tuesday, July 05, 2005