Health Insurance Articles
Three Basic Types Of Health Insurance Coverage
2010-04-06
Everybody needs health insurance, and it's good to have insurance options. After all, you never know when sickness will arrive. Fortunately there are three types of health insurance you can choose from: PPO, HMO, and fee for service. All three can be beneficial based on your health care needs.
One option is PPO, which stands for Preferred Provider Organization. This plan provides a network of doctors, hospitals, and other health care providers at lower fees. An example of lower fees is a visit to an in-network doctor, which may cost you as little as $10. Thus, you save money getting medical care within this network versus going outside of it; however, you can choose to go to an outside doctor. While you will still have health insurance coverage for doing this, be prepared to pay a high deductible. Also, PPO allows you to see a specialist without a referral. In addition to saving money by staying within the network, you have less paperwork to bother with.
Another option is HMO, or Health Maintenance Organization, is the least expensive health insurance coverage available. This is due to its limitations. Unlike PPO, you can not go outside the medical network for medical care. If you do, then you are responsible for the entire bill. Staying within the HMO network, however, means you make small co-payments during office visits, hospital stays, and on your prescriptions. For instance, a visit to the doctor's office may cost you as little as $5. Another limitation with this affordable health care plan is your inability to see a specialist - unless you're referred by your primary care physician, who manages all of your medical needs. Moreover, this specialist must be a member of the HMO health plan.
The third choice is fee for service. This medical plan offers the most flexibility. You have the right to choose your own doctors and hospitals and no referrals are needed. Be aware, however, that this does come with a high price. Your deductible can be as high as $2,500 before your medical insurance company begins paying out for care. Despite its versatility, there are some restrictions with fee for service. Preventive care, for example, may be an expense that's deemed entirely payable by the patient instead of the insurance carrier. This includes check-ups, vaccinations, and routine office visits. Unlike the managed plans PPO and HMO, fee for service is a traditional plan. So if you're trying to decide whether managed or traditional health coverage is best for you, simply get a health insurance quote on all three plans. This will help make your decision easier, and thus, put you on the road to having the health care you deserve.
