Find Out What Type of Health Insurance is Right for You
Sunday, December 2, 2007
If you're trying to select the right kind of health insurance for your needs, you may find it pretty confusing. There are many kinds of insurance these days, and you may need a little help to figure out which one is right for you. Learning what some of the types of insurance really are is a good first step in taking care of your health care needs, as well as that of your family.
Traditional Health Insurance
When you think of health insurance, this is probably the one that comes to mind. The insurance company charges you a premium each month, and then you are covered for almost every doctor's office visit or emergency treatment. Usually you still pay a co-pay or deductible amount, but the rest will be paid or repaid by the insurance company. Most of the other types of insurance are variations on this basic type of insurance.
PPOs: Preferred Provider Organizations
Preferred Provider Organizations are similar to traditional plans, as they also cover most of your medical expenses in the same way. However, they cost the insurance company less and therefore can have lower premiums. How? By limiting the network from health care facilities that you can go to and still be covered to those on a list provided by the health insurance company. If you need treatment from a type of physician not included in the network, you will have to pay the entire cost yourself.
POS Plans: Point-Of-Service Plans
A Point-Of-Service Plan is also similar to a PPO, but begin instead with a primary care provider. You must see your primary physician for any and all problems, and he will refer you to a specialist within the network that is covered by your plan. This adds an extra step to any doctor's visit. Again, you must pay to visit any doctor or hospital that is outside the network covered by your plan.
HMOs: Health Management Organizations
HMOs are sort of a combination of the Point-Of-Service and Preferred Provider plans; like the PPOs, you may only visit health service providers on a list given by your health insurance company, but you must also be referred by your primary physician first. While these can be very restrictive rules, many HMOs have very low monthly premiums, and some have no monthly premiums at all.
HSAs: Health Savings Accounts
Health Savings Accounts are a newer type of health insurance system put into place in 2003. They are not really a type of insurance plan, but a way of saving money to use for medical expenses in the future without having to pay taxes on the savings. They are best used in combination with another type of insurance, with the savings used to pay high deductibles.
If you're not sure what type of health insurance is right for you and your family, consider making an appointment to talk with a professional insurance advisor or broker, and do your research before committing to anything. Health insurance is a vital part of your life plan, and with a little exploration you can find a plan that suits your needs perfectly.
Labels: Health Insurance