Types of Health Insurance Plans
Health insurance plan or heath care plan is a type of insurance coverage that covers or pays the expenses of the incurred, either medical or surgical by the insurance. This insurance repays the charges of the insured incurred from injury or sickness or directly pays the care provider.
Why is health care plan necessary?
Health insurance plans are important for a number of reasons. First, if a person or entity has insurance, it can protect you from severe loss of finances or responsibility due to unexpected happenings, accident or adverse event. Second, the insurance helps you pay you and your family of the money spent that could be very expensive. And third, insured people will receive more care in medical and time so that the sick patient will be cured upon arrival.
For you to start, be part of this insurance. First, you must know the different health insurance plans.
- Health Maintenance Organization (HMO)
HMO is a type of health insurance that the coverage to care is usually limited from doctors, hospitals and other health care providers who work for or participate in the plan. It only means that you can only go to doctors or ask help to other health care providers or else to hospitals. HMO requires PCP or Primary Care Physician that will manage the care of the patient. In this insurance, you cannot get or ask help to other doctors, but plainly, you can only ask to those who are involved in HMO.
- Preferred Provider Organization (PPO)
PPO, a health insurance plan and also a type of Medicare Advantage Plan that the private insurance companies offer. Like HMO, this insurance will also use network providers, but this insurance gives you more comprehensive benefits. The advantage of this insurance is you have the option to use or not to use non-network providers, but, the benefits that you get is low and the higher your expenses. In PPO plans, you can get and ask for another doctor, hospitals or other health providers but will cost you so much money.
- Point of Service Plan (POS)
A Point of Service Plan is a type of health care insurance with a combination of HMO (health maintenance organization) and PPO (preferred provider organization) insurance plans. Like in HMO, there is a designation of primary care provider who will take care of the referrals to specialists who are in the plan. In PPO plan, you can use other non-network doctors, health care providers or hospitals but with higher expenses.
- High-Deductible Health Plan (HDHP)
It is a type of health insurance plan with lower premiums but with the higher deductible than traditional plans like HMO’s and PPO’s. This type of insurance will let you pay your expenses out of your pocket before they will cover your expenses. It requires you to open a health saving account allowing you and your employer to make tax-deductible contributions.
- Exclusive Provider Organization (EPO)
The same with HMO, this requires you to use network providers like hospitals, doctors and healthcare providers that are involved in the plan.
The difference is that you do not need PCP or Primary Care Physician neither do you need them in referring you to specialists. So, you are the one who is responsible for contacting the specialists or choosing hospitals to check whether the provider is in the network.
Above are the different health care plans that you need to know. These health plans are way more helpful for it ensures your well-being and the health of your family as well, reliable for it has some examples and discussions given. It is up to you and your family what insurance plans you will choose.