Types of Health Insurance and Tips to Choose the Right One Dr. Kamini Jain August 9, 2020 Health & Beauty 1750 Protecting yourself and loved ones is one of the greatest pursuits in life. It means being safe, mindful, and always prepared for the challenges that get thrown at us. Some of these challenges are from our own doing, and others are random occurrences, but they all need to be considered and managed when possible. One of the ways we can manage these unexpected events in life is by preparing ourselves with health insurance. Medical health insurance is intended to protect us from the pitfalls of financial problems that can come due to accidents, hereditary problems, and other issues relating to our health. Health insurance is a measure that we can provide for not just ourselves, but our loved ones too. Nothing means more in life than our health and without some form of protection, we could potentially be vulnerable to disruptions, like financial troubles or a lack of adequate care. Health insurance is not a catch-all term, as there are many different types and reasons why you need it. Check out this list to figure out what kind of health insurance may be right for you or your family. Preferred Provider Organization (PPO) Plan A Preferred Provider Organization (PPO) is a type of healthcare insurance coverage that allows you some freedom and flexibility when it comes to choosing which healthcare providers you can choose from. These insurance types allow for you to see providers outside of your covered network, but that means you have to pay more which may result in a higher deductible. This affects the premium you pay monthly but allows you some freedom if you choose a doctor, specialist, or provider that you like that is not covered. The doctors and providers in the network of your PPO depend on factors like area and companies as well. Having some balance in terms of flexibility is important for some, which may be why you want it as well. Health Maintenance Organization (HMO) Plan This plan is much less flexible in terms of what providers you can use compared to a PPO insurance plan. These plans involve the same basic structure where there is a network of healthcare providers you can choose from as they find a primary care doctor/provider for you. The good thing about this, and why it is a popular plan, is that there is less paperwork involved on your behalf when finding other providers. This involves specialists too, which means you can be referred to a specialist inside and outside of the care network where you will not have to pay, just the referral is required. An HMO is a good plan for younger people because the likelihood of seeing a specialist is often less because of the reduced amount of serious health complications or specific needs. There are also lower premiums so less of a cost issue involved monthly. Group Health Insurance Plan Sometimes this type of health insurance plan falls under the distinction of a Point of Service (POS) Plan. The benefit of a group health insurance plan is that it allows for a greater amount of coverage spread across a large number of policyholders. This allows for reduced costs in premiums which is beneficial to the group but could change the deductible amounts depending on the plan. This can be covered by an employer as well as allowing them to help you choose an appropriate plan and this helpful page highlights why this plan, above others, is considered useful for health insurance plans in the workplace. Individual care plans do not work as well in businesses because it is sometimes easier to group employees to make the paperwork easier to manage and provide those benefits like reduced or covered premiums. Exclusive Provider Organization (EPO) Plan An EPO is as the name suggests – exclusive. This plan is meant to limit your choices into one healthcare provider, which is similar to an HMO. There is less choice but there are benefits to having a limited amount of healthcare providers. For starters, referrals are possible for emergencies or specialists and can come at a reduced cost which benefits the policyholder. Likewise, premiums may be lower even with the risk that out of pocket costs could fall on their shoulders if they find an out of network provider. Still, this plan is similar to the HMO which means considerations have to be made when choosing providers out of network. There are still valuable providers within the network so it helps narrow it down rather than having a large amount to choose from which could impact premiums or deductibles because of that freedom to choose. Indemnity Health Insurance Plan Fee-for-service plans such as an indemnity health insurance plan usually require policyholders to pay out of pocket, but this is not meant to scare you out of considering it. This plan usually allows you to pay for care out of pocket in which you are reimbursed after you file a claim. The difference is that your premiums are likely to be higher because of this. You get a lot more flexibility out of this plan which is why it is popular for people who want control out of their healthcare provider options. https://images.unsplash.com/photo-1593538312817-97a85c092c1e?ixlib=rb-1.2.1&ixid=eyJhcHBfaWQiOjEyMDd9&auto=format&fit=crop&w=500&q=60 Health Savings Account (HSA) Plan This plan is interesting because it is not like other insurance plans in the conventional sense. Many employers use this plan because it allows for tax-free funds to accumulate into an account to allow for the holder to use healthcare when needed, and it rolls over accumulating interest as the years pass. You can contribute as little or as much as you like depending on how you feel as well. This plan works well for employees who want coverage but not a group plan. As you can see, there is a lot of variety and certainly a lot of reasons as to why there is so much variety. These health insurance plans offer something unique for each individual depending on their needs and they offer something for everyone at the same time. Whatever you choose, make sure to use this information and research how it benefits you the most out of all your choices. SHARE THIS POST