Just in the United States, there are about five types of health insurance available: traditional health insurance, preferred provider organization or PPO, point of service or POS plans, HMO or health management organizations and recently health savings accounts or HSAs. With the so many types of health insurance this can be confusing trying to figure out which best suits your health care needs, so thoroughly research each one and speak with a professional if you need any clarification.
Traditional health insurance is what most people think of when one thinks about health insurance. You pay insurance premiums every month, and if you have an accident or the need for health coverage, you must pay a deductible and then the insurance company pays the remaining bills. They often have cheap office and / or prescription co-payment with traditional health insurance.
There are people who live a lot longer now, so insurance companies started looking for more ways to reduce costs, the development of different health plans such as PPO. PPO is a plan that covers almost all medical expenses during your stay in a network of preferred doctors or hospitals. This network creates a “supplier of choice” list you can choose. Treatment outside this network of providers is covered but only at reduced levels, which means you pay more to see a doctor outside the network. By limiting doctors and hospitals within the network coverage, the insurance company can control to some extent, their costs and reduce your premium. POS plans work like a PPO, but one must have a general practitioner where you can receive referrals to specialists. If one needs to see a neurologist or dermatologist, they should first visit the physician for initial evaluation to receive a referral to a specialist for further examination. POS plans also have a network provider of choice, and if you decide to see a specialist or doctor outside the network, coverage is limited.
HMO combines rigorous version of PPO and POS plans. HMO has established a list of doctors, that tend to be smaller than the PPO networks, you can see. Your not covered at all if you see a doctor outside your HMO network. On the other hand, one also must obtain a referral from an HMO primary care physician to see a specialist. However, this restriction means that you pay extra low or no monthly fees.
HSA was recently signed by President Bush. You can deposit money in a non-tax purpose, the special interest gained savings will be used for medical expenses. The ideal situation for the HSA is to combine the account with low costs, high insurance plan deductible. This savings account was designed for you to cover the higher deductible if you feel the need to cover expensive medical costs while the insurance company is left to collect the outstanding receivables.
Once again, it is important to examine each option carefully before choosing an individual health insurance plan. Your health is important to make sure you’re protected as best as possible.
