Types Of Health Insurance Plans

01/19/2021

Health insurance is basically an insurance which covers a portion or the entire risk of the individual incurring healthcare related expenses, spread over several persons. In general, health insurance comes in three forms - PPO (Preferred Provider Organization), HMO (Health Maintenance Organizations) and POS (Point of Service) Insurance. Each type has its own benefits and drawback. Let's take a closer look at each of them:

A PPO health insurance plan allows you to get medical care on the same network you use for other medical care. For example, if you have a doctor who is a member of your network, your premium will be lower than if you go to a different doctor. However, a PPO does not cover the entire cost of your medical care. You may have a lower deductible, but the monthly premium also will be higher. You may also have fewer coverage options. Do check out nationalinsurancedirect.org to learn more about insurance. 

An HMO health insurance policy requires you to choose a primary health care provider. Your premiums will be lower if you choose a primary care physician within the HMO network. The medical services you use will be limited in terms of the number of medical providers, hospitalization coverage, and prescription drugs.

A POS health insurance plan lets you get medical services from any healthcare provider you prefer, even if they are not covered under the health insurance plan you are signed up for. It allows you the freedom in choosing the healthcare provider that best suits your needs. However, you will pay more for the premium due to the high number of medical services that you will need to pay for. You can choose affordable options like making use of a POS nurse practitioner, whose services are much cheaper compared to the fee of a physician. You can also get prescription drug coverage included in the premiums.

PPO health insurance plans gives you more choice regarding medical cost containment. However, there is also a high risk premium involved. The insurer pays the medical costs of the insured, even though the insured is no longer receiving treatment. There are also optional health care coverage like vision benefit and dental benefit included in the premiums. Sites like nationalinsurancedirect.org can be most helpful for insurance solutions. 

Another option is the catastrophic health insurance. It is more expensive than other policies as it comes with a high deductible. Once the deductible is reached, the insurer stops paying on the insured's medical bills every year. This means that the person has to pay the entire amount of the medical bills every year, without any grace period. Thus, the person ends up having extremely high medical bills every year. Do look up health insurance solutions here: https://youtu.be/A4-pklsDT_Q