The insurance market is flooded with options of different types of insurance that one can choose from. Before making a decision it is important to compare health insurance plans for families that are available and what is best suited for your needs. Each company usually offers these four common types of health insurance covers. Whether one is looking to buy health insurance for senior citizens or maternity health insurance it is important how these plans differ and to get familiarized with these so that the one that best fits the budget can be selected. These are discussed below in detail:
Health Maintenance Organizations (HMOs) – they deliver health services with the help of a network of providers and facilities. In this the freedom to choose a health care provider is restricted, it involves the least amount of paperwork as compared to other plans and it has a primary doctor assigned who manages your health and refers you to specialists as per requirement. It also has a network of doctors who can be referred to in case the need arises. Most mental health illnesses are also covered as per this report on best states for mental health workers in America. If a doctor is seen who is outside the network then the bill for that is not covered. If an out-of-network hospital is visited because of an emergency then only the cost that is set for a network hospital will be covered.
Preferred Provider Organizations (PPOs) – this allows a moderate amount of freedom when it comes to choosing a health care provider however it does not assign a primary doctor to get a referral from. The cost of seeing an out-of-network doctor is higher than seeing one that is within the network. The paperwork involved than other plans when an out-of-network provider is seen.
Exclusive Provider Organizations (EPOs) – this also allows a moderate amount of when it comes to choosing a health care provider and a primary doctor’s referral is not needed to see a specialist doctor. There is no cover provided for out-of-network providers. If any out-of-network provider is seen then the full cost of it will have to be borne by the individual themselves. This is however not applicable in the case of an emergency. The premium is lower as compared to a PPO or Preferred Provider Organization. They may however have a deductible and it is very little or no paperwork involved in this.
Point of Service Plans (POS) – this combines the features of Health Maintenance Organizations and a Preferred Provider Organization. It also provides more freedom to choose a health care provider but provides a primary doctor who will help with referring to specialists. There is a moderate amount of paperwork involved if an out-of-network provider is seen. A higher deductible is involved if an out-of-network provider is seen.
High –deductible Health Plans (HDHPs) – this is usually linked to Health Savings Accounts (HSAs) and is combined with one of the above-mentioned plans. It has a higher out of the pocket cost and once that limit is reached then the company pays for the full amount of your health care. The money put in this is not taxed only when it is combined with an HSA. This also has a lower premium as compared to other plans.
The above is a basic guide to the different types of covers that are available and only after going through the blueprint of each should a decision be made because this is primarily an investment for your future care.