There are two types of Medicaid contracts; 1) an "indemnity" policy and 2) a "pay on behalf" or "on behalf of" policy. The difference is heavy on paper, but rarely material in practice.

Insurance may also be purchased Group Health Insurance through an agent. Unlike a broker, who represents the policyholder, an agent represents the allowance crew from whom the policyholder buys. An agent can represent farther than one company.