It is a kind of insurance coverage that covers the medical charges and the surgical charges of the insured. Depending on the type of coverage opted by the insured, either the insurance company makes payment to the provider or the insured settles the bill by depositing in money from his pocket and claims for a reimbursement later. A health insurance plan is generally included in employer value packages.
Selecting a proper health insurance plan for you and your family is very essential. To begin with, you should explore the different options available and choose the plan that fits your needs. Below are the plans that will help you in evaluating the options available.
Here are the popular types of health insurance plans.
Preferred Provider Organization Health Insurance Plan (PPO)
If you choose PPO plan, both you and your family have the freedom to see any health care provider in the insurance company’s web, including specialists, without a recommendation and the main advantage of this plan is that there will be minimal or no paperwork involved. If you wish to see a specialist outside the insurance company’s network, you are likely to bear huge expense from your pocket and you will have to do a lot of paperwork. To avail the plan, you will have to pay a premium each month to the insurance company. The deductible may be applicable for some PPOs and if your doctor is outside the network, then you will have to pay double the deductible. You may also have a co-payment for certain services or a co-insurance where you are accountable for a percentage of the overall medical expenses.
Health Maintenance Organization Health Insurance Plan (HMO)
One of the most popular health insurance plans that you can purchase is the HMO. HMO allows you to select a primary care provider (PCP) who will be responsible for managing all of your health amenities and care. To visit a specialist, PCP referral is needed. HMOs usually provide insurance for most types of preventive care. Copayment fees will have to be paid by you if you go for a non-preventive medical visit and you may also have an annual deductible. Premium to be paid to avail this plan is much less compared to PPO.
Exclusive Provider Organization Plan (EPO)
EPO has a network of physicians. You will get access to all of the healthcare sources within the network. Insured will have a Primary care Physician (PCP) and referral from a PCP is needed in order to see the in-network specialists. Insured may have to make small copayments and may require a deductible.
Point of Service Plan (POS)
A fusion of HMO and PPO plans is POS plan. With this plan, the insured will have to elect a Primary Care Physician (PCP) for regular checkups and for referrals if he wishes to see a specialist. If you are willing to pay out of your pocket, then you can also make use of the providers that do not come under the network describe by POS. You will have a copayment and deductible as well if you visit physicians outside the network. Sometimes, you might have to make a payment and then claim a reimbursement.
High Deductible Health Plan (HDHP)
This plan is a cross of PPO, EPO or HMO plans. This type of plan is useful for people who wish to save money with low scheduled monthly premiums and for those who are not bound to the extensive usage of medical coverage. This type of insurance makes you pay out of your pocket and if the maximum is reached, the plan is responsible for the 100% payment. This plan can be coupled with HAS to avail more benefits.
Health Reimbursement Arrangement (HRA)
Health Reimbursement Arrangements are a part of Consumer-Driven Health Plans. The members of HDHP can opt for HRA if they are not eligible for HAS. In this plan, the insured cannot make deposits into HRA. This account will not earn any interest and the main disadvantage is that the amount is non-transferable if the insured wants to exit from the plan. They may be referred to a health plan with a different title, such as Personal Care Account.
Health Savings Account (HSA)
HSA allows the individuals to pay for the current health expenses and also save for the future medical charges that the insured may incur, on a pretax basis. Funds can be deposited into the account and unlike HRA, HSA earns interest on the funds in the account. These funds are tax-free. In order to open an HSA, you must already be insured with an HDHP.
Clearly, you have many options to choose from; but, there is only one plan that you must select that is right for you and your family and fits your budget. You can also opt for more than one plan. Buy a health Insurance plan today and ensure the safety of you and your family.
