Like all other industries the insurance industry also has a host of divergent plans. The terms and conditions relating to each plan may be unique and commensurate with the plan objectives. For example, instead of going for the coverage limit the insurance plan could go the reverse way. This is normally the case of the group health insurance plans where the out of pocket expense borne by the policy holder will have an upper limit. Once the limit is reached the paying obligations of the policy holder ends and the burden is shifted to the insurance company.

Such out of pocket expenses May not cover all aspects of your health care but may be limited to particular category of benefits like the prescription drugs. Some times the policy holder and provider enter into a mutual agreement called the capitation. This means the policy holder will pay a fixed sum to the provider and in return the provider will take care of health care of the family members of the health insurance policy holder.

Sometimes the insurer may have a list of health care providers on pre-selection basis. The insurer will be offering you discounted coinsurance plans or co-payments. They may also offer additional benefits to you. Normally the providers will enter a contract providing discounts over and above the usual charges to the policy holder. In your health insurance quotes such provider is called the Network Provider.