There are many different types of health insurance plans for those with different needs and budgets. When you are looking for health insurance it’s important to know the different types of plans that are available to you and what types of options for coverage you have.
Traditional Health Insurance:
Traditional health insurance plans are also known as “fee-for-service” or indemnity health insurance plans. This type of plan is much like an auto insurance policy that has a monthly premium and also a deductible. The deductible can be chosen by the insured to cater to their cost needs. A lower monthly premium will usually have a higher deductible and co-insurance while a higher monthly payment will give you a lower deductible with up to 100% co-insurance paid by the insurance company.
The insurance company will not pay out any medical costs until the insured meets the yearly deductible. This is why a lower deductible is much more attractive to most people. Some health insurance plans will give you preventative care options with no deductible; this makes keeping yourself healthy easy so that you can find medical conditions early rather than having a medical emergency that requires you to pay the deductible.
Preferred Provider Organizations (PPO) and Point of Service (POS):
PPO and POS health insurance plans are just about the same kind of insurance plan. Both allow you to pay less out of pocket costs, lower monthly premiums and allow for less paperwork. The catch with this type of health insurance plan is that it is highly suggested that you use their preferred doctors and medical facilities. If you go out-of-network for care you will end up paying much more than you would going with an in-network doctor or facility. Sometimes when you use an out-of-network provider you are required to pay the medical bill before you can submit it to the insurance company for reimbursement.
Health Management Organizations (HMO):
The least expensive option for health insurance plans is the HMO type of health insurance. This type of insurance is normally carried by employers or other groups but is available to individuals sometimes. It is required, with an HMO plan, that you use their providers and they will not pay for any medical bills from providers or facilities that they don’t cover. Using an HMO plan will also require that you get approval for referrals and sometimes medical emergency room visits as well. This can sometimes be inconvenient if you suffer from a serious illness or injury and are unable to wait for approval.
These plans are appealing because they are low in cost, have low monthly premiums, not much paperwork to fill out and have lower deductible options and can offer more co-insurance expenses covered by the insurance company rather than the insured.
There are many different options that you need to decide on whether you need coverage for them. These include:
- Maternity and Childbirth Coverage
- Vision
- Dental
- Mental health coverage
- Addiction help coverage
- Chiropractic/homeopathic coverage
- Physical therapy
- Prescription drug coverage
- And more
When deciding on your plan you need to plan for your near future so that you can be covered for whatever medical need that comes your way.