The basic types of health care coverage are indemnity plans, managed care plans and consumer-directed plans. The plans vary in coverage, out-of-pocket expenses and service networks. Indemnity and managed care plans may differ in how you access services; obtain specialty care and how you pay for care. They cover a variety of medical, surgical and hospital services, and most plans offer some prescription drug coverage. Some even cover dentists and other providers. The major difference between indemnity (non-network based coverage) and managed care plans (network-based coverage) is your choice of doctors, hospitals and other providers, out-of-pocket costs for covered services, and how bills are paid.