Types of Health Insurance If you should not be covered as a dependent under someone else’s health plan, like a spouse/partner or parent, it’s a good idea to have health insurance. A medical health insurance plan can allow you to manage your health care needs, along with costs.
- The expense of healthcare without coverage could be substantial.
- What’re the several types of medical health insurance?
- The several types of medical health insurance include:
- Health maintenance organizations (HMOs)
- Exclusive provider organizations (EPOs)
- Point-of-service (POS) plans
- Preferred provider organizations (PPOs)
Not sure which kinds of medical health insurance are best for you? There is a general description of each of the types of health plans.
What’re health maintenance organizations (HMOs)
HMOs, provide you with a local network of participating doctors, hospitals, and other healthcare professionals and facilities that you are required to decide on from. These medical health insurance plans also need you to pick a primary care provider (PCP) from the network. Your PCP is your house base for medical care. They get to understand you and help coordinate all your care. They will also have to provide you with a referral to see in-network specialists. The costs for an HMO plan—copays and coinsurance– are typically less than other kinds of health plans, provided that you remain in-network.
What’re exclusive provider organizations (EPOs)?
An EPO offers you a network of participating providers to decide on. Most EPO plans don’t include coverage for out-of-network care except in the event of an emergency. This implies that you will probably have to pay the total cost of services yourself if you visit a provider or facility outside the plan’s local network.
Regarding the plan, you could or may not be required to decide on a principal care provider (PCP) if you wish to visit a specialist in your network; you do not need a referral from a PCP.
What is a place of service plan (POS)?
Point of service plans combine options that come with HMO and PPO plans. The provider network usually is smaller when compared to a PPO plan, and the expense for in-network care is typically lower, like an HMO. POS plans also require you to pick a primary care provider (PCP) from within the plan’s network of doctors and other primary care professionals. Your PCP is your house base for care and advice. They get to understand you and your health needs and will help coordinate all your care.
If you want to visit a specialist, you’re required to obtain a referral. However, just like a PPO, you may also choose to see specialists in-network or out-of-network. If you see a health care provider outside the plan’s network, your share of the expense will be higher, and you’ll lead to filing any claims yourself.
What’re preferred provider organizations (PPOs)?
PPOs typically offer you an extensive network of participating providers, so you have plenty of doctors, hospitals, and other healthcare professionals and facilities to decide on from. You may even choose to see providers from outside of the plan’s network, but you’ll pay more out-of-pocket.
Choosing a primary care provider (PCP) is not required with this kind of health plan, and you can see specialists without a referral.
What kinds of medical health insurance are best for me personally?
Start by understanding your specific healthcare needs:
If you’re in good health and don’t visit a health care provider often, medical health insurance plans with higher deductibles routinely have lower insurance premiums and could save you money.
If you require or expect more than simply preventive care, consider plans with lower deductibles and coinsurance for more predictable costs.
I have a chronic condition. What kinds of medical health insurance are best for me personally?
Chronic conditions could require regular medication and more frequent doctor appointments, even costly hospital stays or surgeries. Consider a health plan that helps minimize out-of-pocket costs predicated on what you anticipate for doctor care, specialist visits, prescription medications, etc.
Health Savings Account (HSA) Health Insurance Plans
One alternative to the traditional group, medical health insurance, is an HSA. An HSA is a Health Savings Account.
An HSA is a tax-favored savings account used together with an HSA-compatible high deductible health plan to pay for qualifying medical expenses. Though HSAs could be attached to group medical health insurance, they’re owned by employees, and small businesses can contribute to them whether they provide a group policy or not.
The contributions to an HSA may be produced pre-tax, as much as certain limits set by the IRS. Unused funds in an HSA account roll over each year and accrue interest tax-free. Funds can be utilized for other life events and may incur penalties and claim to be paid.
- An HSA may be an excellent option for the small company if you:
- Can’t afford friends medical health insurance policy
- Want to have greater control over how much you donate to health advantages
- Have a large number of employees who have an HAS