Health insurance means an insurance covering the medical expanse for the whole or part of a critical healthcare support. Keeping a health insurance enables you with great healthcare facilities and gives great health output. Day by day the health is getting more complex and in the meantime keeping a health insurance enable a person to face critical situation including health care benefits. You don’t want to face financial ruin or make your family feel worried or do you?
But choosing a health insurance is pretty hard if you don’t know their policy, features and other stuff. In this post, we are going to explain types of common health insurance out there. Hope that by the end of the content you’ll be able to choose the best insurance.
But before that let’s take a peak on the names of the health insurance plans:
- Preferred Provider Organization (PPO)
- Health Maintenance Organization (WMO)
- Health Savings Account (HSA)
- Point of Service (POS)
- Exclusive Provider Organization (EPO)
- Indemnity Plans
- Flexible Spending Account (FSA)
Now let’s go through each plan in details.
Preferred Provider Organization (PPO)
PPO is a medical insurance plan that provides the freedom and flexibility for the members to select the doctor of their choice in for all types of medical needs. Financial discount and reimbursements will be stronger when you are receiving care from your contracted doctor, hospital or medical facilities. It’s known as in-network providers. Well, you can visit a non-contracted doctor but the cost is heavy. The benefit of this plan is that you don’t need to require a referral from your primary doctor. You just simply choose your physician. But it’s recommended that you choose contracted doctors as for your financial benefits.
Generally, you have an annual deductible in PPO that you would be required to pay before your contracted insurance company begins covering your medical expenses.
PPO plans have 3 commonly used benefits and they are:
- Small Copayment prior to paying in deductible which covers prescriptions & and some other medical fee.
- An annual deduction will get the members of the plan to pay few percentage of the medical fee which we call coinsurance
- After the annual deductible, the insurance company will be satisfied and the plan will cover all your fee.
Health Maintenance Organization (HMO)
If anyone chooses a health maintenance organization one will end up paying lower premium payments & copays for health services. Well, this means that you will have lower expanse and for this you will have less flexibility in choosing your doctor or hospital healthcare. In HMO one will choose ones primary care physician from a list of participating doctors and the doctor will help manage your healthcare for you. For example, HMO network includes some specialist physicians and when necessary your doctor will choose a specialist for you. If you can stay in the network on your insurances HMO plan, you’ll need to bear very little expenses even if it’s an emergency situation. But if someone with an HMO plan visits a doctor out-of-network the whole bill is his responsibility.
Health Savings Account (HSA)
Paying for healthcare have never been easy and less expansive without a health savings account. A HAS allows you to pretax dollars to pay for out of pocket healthcare expenses such as medical, dental, vision and other medical expenses which you normally pay with post-tax money. Not only that with this pre-tax funds you can easily bear the medical expenses for your family members. It also comes with interest and investment benefits. You will receive interest in monthly basis and be able to invest in the nationally known mutual fund families. Here comes the best part, even if you change your job or health plan HSA stays with you. Which means the funds will never expire. You can even use your account for retirement expenses. With this plan, you can save up to 30% of your eligible medical expenses.
Point of Service (POS)
This is simply an HMO plan which allows you medical expenses outside the HMO network. In each point of service, you get to choose between higher HMO benefits from your HMO provider or lower traditional benefits from none network providers. Well, you will need to choose a primary care physician. This plan is a hybrid version of HMO. This plan offers you 100% wellness benefits when you are in HMO network. Your primary care physician will choose the HMO network physician for you when you need care. Like a PPO plan, this plan provides a larger network.
Exclusive Provider Organization (EPO)
Well, this plan is similar to HMO plans. This plan provides a network of physicians & their members are required to consult physicians except in case of emergency situations. Members will get a primary care physicist who will, later on, refer to any in-network physicist. An EPO member is responsible for small copayments and may require a deductible. You will find the right services with a smaller panel of providers. An EPO is a good insurance plan for you and your family.
This health plan is known as fee for service plans because of pre-determined amounts of percentages paid to the members for covered services. Members may be responsible for deductibles and co-insurance amounts. 9If you seek for high-level flexibility and choice for medical healthcare’s this is a great plan for you.
Flexible Spending Account (FSA)
FSA is an account where you can automatically deposit a portion of your pre-tax paycheck to save to save for medical expenses. This allows saving you or your employees to save for medical expenses and also saves tax provides. You can use the money saved in the account for qualified medical supports which are not covered by insurance. This plan can help you bear out of pocket medical expanse and some FSA supports day-to-day childcare. Seems to be a good plan.
Choosing a health insurance plan is pretty much like gambling don’t you think? But after you know about the plans it’s not that much of a gamblers play. You need to focus on your financial state and your plan agreements before purchasing a plan. We have discussed them. We hope that you can get a better plan for you and your family.