Last year, more than 26 million Americans did not have any health insurance.
It is always a good idea to have health insurance if your parent or spouse does not cover you. The coverage helps you to get quick medical help in times of emergencies, even if you don’t have cash at hand.
You have made the right decision if you have finally decided to apply for a healthcare plan. But before the application, you should understand the different types of health insurance available in the United States. The knowledge can help you choose the best healthcare plan for your needs and budget.
Here is a brief description of the four leading health insurance plans. Please read these health insurance policy tips to make an informed decision.
Health Maintenance Organizations (HMOs)
HMOs are the most popular health insurance plans. They provide a network of local hospitals, doctors, and other healthcare facilities for you to choose from.
The plan allows you to select some primary care providers who will be providing the home-based service. Your primary care provider can also recommend other great medical experts from the network.
The HMO premiums are significantly lower than the other plans; hence, this is the best option for you if you have just lost your job and you are considering COBRA insurance.
Like COBRA, the payments are low, and you can rely on it as you build yourself financially. You can either pay annually or monthly when you join this network.
Exclusive Provider Organizations (EPOs)
This is a managed care plan where you can only get the medical services when you visit a hospital/doctor within the network. If you visit a hospital that’s not part of the network, you will probably pay from your pockets unless it was an emergency case.
Most EPOs don’t allow the clients to have a primary care provider. This means that any specialist can attend to you provided that you have paid your premiums and the facility is a member of the network.
Preferred Provider Organizations (PPOs)
The PPO health plan has a network of health specialists and hospitals that have agreed to work together, service their patients at a reduced process. Like EPOs, the members of this plan do not need to have any primary care provider.
Instead, they can visit any doctor or hospital within the network. One may also seek medical help from other doctors who are not members of the network. However, the outside services come with additional costs.
PPOs are similar to HMOs, but the only difference is that they offer extensive services than HMOs, plus, the overall premiums are quite high.
Point of Service Plan (POS)
A POS is a managed health care plan which combines the features of a PPO and an HMO. The people who choose this option get to enjoy low premiums, just like those in the HMO plan.
Also, the members get the chance to choose a primary care physician who will be taking care of their medical needs. If you pick this plan, you will be paying premiums, the deductible, and the coinsurance.
Understand the Different Types of Health Insurance Plans Well
Don’t invest in a healthcare insurance plan blindly. If you are looking for a job, confirm the health insurance plan which your employer offers.
If your employer does not offer the exact healthcare policy plan you need, you can get a quote for the different types of health insurance. Ensure that the coverage plan you choose is affordable, manageable, and suits your needs.
Did you love this article on the different types of health insurance plans for cost-conscious coverage? Our goal is to help our readers plan their healthcare and insurance to make the best decisions. Please read the rest of our healthcare and insurance policy coverage articles to learn more.
