Commercial insurance plans are also called private insurance plans. They are any kind of insurance that is not paid for by the government. Medicaid, Medicare and veterans benefits are paid for by the government and therefore are not commercial insurance.
Commercial insurance is paid for by individuals, clients, unions or employers. It can be paid for completely by one source or by a combination of them.
Private health insurance is provided by many companies and can vary greatly in coverage, premiums, deductibles and benefits.
One of the most common kinds of commercial health insurance is home maintenance organization (HMO) insurance. HMOs usually demand that you choose a primary care physician and make a co-payment for each doctor visit along with regular insurance premiums.
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Indemnity insurance only covers a pre-set, defined number of services. Many only cover hospital costs.
Point of Service
Point-of-service plans are similar to HMOs in that you must choose a primary care physician, but they also provide the option of choosing another physician not listed if you are willing to pay more for the visit.