Health plan and health insurance are both important parts of a person’s healthcare coverage. However, they are different and can often be confused.
A health plan is an organized system of care that includes doctors, hospitals, and other healthcare providers. It also outlines how healthcare services will be provided and covered, such as which tests, treatments and specialists are covered. An example of a health plan is Medicare.
Health insurance is a way for a person to purchase coverage for healthcare services. It is a contract between the insurance company and the person. The contract states what services the person can receive and how much the insurance company will pay for it. Some of the services that health insurance may cover are doctor visits, hospital stays and prescription drugs.
Both health plans and health insurance are important parts of a person’s overall healthcare coverage. However, they are different in that a health plan is an organized system of care and health insurance is a way to purchase coverage for healthcare services. It is important that people understand the difference between the two when choosing a healthcare coverage option.
For more information, check out this article from Healthline on the differences between health plans and health insurance: