Finding and purchasing reliable health insurance when you are self-employed, between jobs, just leaving your parent's coverage, or employed at a job where health coverage is not offered, can be a lesson in managing both money and your own personal well-being. To start, it is important to know the difference between health insurance and many of the so-called health discount plans making the rounds.

Indemnity, HMO, PPO

Health insurance, usually instituted with a specific set of rules dependant upon the individual policy, will have a deductible (An amount you pay out of pocket before the insurance starts to pay, usually per calendar year), the size of which is dependant on the plan chosen. You will also have to decide whether to choose a plan that allows you to choose which doctor to visit, often called an Indemnity Plan, or whether you may only visit doctors that are within your specific plan, often referred to as an HMO (Health Maintenance Organizations) or a PPO (Preferred Provider Organization). While details will vary from plan to plan, most HMO's and PPO's have set guidelines for doctors that, they have pre-approved for its policy holders to use. If a doctor is outside of this network, your chances of getting them to pay for your visits are very low. Each plan, whether an Indemnity, HMO, or PPO, has its own advantages and disadvantages. Research the fine details of any plan you are considering is vital, so that if you need to put the policy to use, you have some idea of how it works

Medical Discount Plans

Medical discount plans, becoming prominent in Internet and print ads; need to be clearly defined as separate from health insurance. For a monthly fee, often much lower than what a true insurance plan could be offered for, you are entitled to certain benefits, such as lower prescription costs, percentages off of office or hospital visits, dental care, and eye care. While these discount plans are not for everybody, and should not be considered as a replacement to a typical health insurance plan, they do have advantages, such as for the uninsured who cannot afford insurance at all.

Research Before You Buy

It is prudent to check out any plan, whether a traditional health insurance or discount medical plan, before signing on the dotted line. With the expansion of these types of policies, scams are becoming popular. Some ways to check on a company's reliability is to ask your health care provider if they accept and work with the plan you are considering.