A common misconception is that all insurance plans are alike or have very little difference, but if you compare health insurance plans from different companies, you will discover that that is not true at all. There are four major classifications of this type of insurance and all of them have their pros and cons. The trick to getting excellent healthcare coverage is to learn more about the various types of this insurance and choose the one that's the best for you.
Health Insurance Options
When you compare health insurance, the first step is to know what kind of insurance it is. Traditional insurance or Major Medical Insurance is a policy or plan that enables you to choose whatever hospital, doctor or healthcare provider you wish to go to. You usually have to pay a deductible to the insurance company before you receive any benefits. This plan covers 80% of your medical bill and you have to shoulder the remaining 20%. This gives you a lot of flexibility, but your cost may be higher depending on how often you use the plan or policy. Another popular choice is the HMO or Health Maintenance Organization. If you get your insurance from an HMO, the cost is usually less expensive than with traditional health insurance. It involves a network of hospitals, physicians and healthcare facilities. The plan holder pays the HMO a premium and the company covers all the expenses. However, you need to stay within the network set by the HMO and all procedures need to be cleared with the company first as all services that are found to be unnecessary will not be covered. This type of insurance limits your flexibility and ability to chose which doctor to see and what you can have done, but it does minimize out-of-pocket costs. Another option when you compare health insurance is The PPO or Preferred Provider Organization. In some ways, it is similar to the HMO because there is a network of preferred healthcare providers to choose from. With this plan, you can also choose to see a doctor outside the preferred network; however this may have higher co-pays and deductibles. The last major type of this insurance is the POS or Point of Service. It is like an HMO and a PPO combined. With the POS, you need to see a primary care physician within the network first to get any coverage. This physician then authorizes a referral to a specialist which can be inside or outside the network. Like the PPO, charges are less for in-network services.
Keep this in mind when choosing healthcare providers. Remember, like with any type of insurance, you should always compare health insurance plans to ensure that you get one that's right for your needs and preferences.
Health Insurance Options
When you compare health insurance, the first step is to know what kind of insurance it is. Traditional insurance or Major Medical Insurance is a policy or plan that enables you to choose whatever hospital, doctor or healthcare provider you wish to go to. You usually have to pay a deductible to the insurance company before you receive any benefits. This plan covers 80% of your medical bill and you have to shoulder the remaining 20%. This gives you a lot of flexibility, but your cost may be higher depending on how often you use the plan or policy. Another popular choice is the HMO or Health Maintenance Organization. If you get your insurance from an HMO, the cost is usually less expensive than with traditional health insurance. It involves a network of hospitals, physicians and healthcare facilities. The plan holder pays the HMO a premium and the company covers all the expenses. However, you need to stay within the network set by the HMO and all procedures need to be cleared with the company first as all services that are found to be unnecessary will not be covered. This type of insurance limits your flexibility and ability to chose which doctor to see and what you can have done, but it does minimize out-of-pocket costs. Another option when you compare health insurance is The PPO or Preferred Provider Organization. In some ways, it is similar to the HMO because there is a network of preferred healthcare providers to choose from. With this plan, you can also choose to see a doctor outside the preferred network; however this may have higher co-pays and deductibles. The last major type of this insurance is the POS or Point of Service. It is like an HMO and a PPO combined. With the POS, you need to see a primary care physician within the network first to get any coverage. This physician then authorizes a referral to a specialist which can be inside or outside the network. Like the PPO, charges are less for in-network services.
Keep this in mind when choosing healthcare providers. Remember, like with any type of insurance, you should always compare health insurance plans to ensure that you get one that's right for your needs and preferences.