ABSTRACT
This chapter identifies the major changes to individual and group medical expense coverage under the new Affordable Care Act. It describes the basic characteristics of the following types of individual coverage: Major medical insurance, Health savings accounts (HSAs), Long-term care insurance, and Disability income insurance. Major medical insurance is a plan that pays a high percentage of covered expenses incurred by insured individuals when they have a catastrophic illness or injury. The chapter discusses the major characteristics of the following managed care plans: Health maintenance organization (HMO), Preferred provider organization (PPO), and Point of service plan (POS). It explains the major characteristics of the consumer-directed health plans: Defined-contribution plans and High deductible plans. The chapter illustrates the current developments in group health insurance and the major characteristics of group disability income plans.
