If you have been paying attention to the cost of medical care lately, you have seen that the costs have been increasing dramatically and becoming more unaffordable to the average individual. Having the right type of health insurance for your family not only protects your health, but protects your finances as well. Understanding what types of health insurance are available for your family and what they do and do not cover is very important to choosing the correct insurance policy. Buying the right health insurance is one of the best things that you can do to increase your financial stability and avoid catastrophic medical bills in the future.
Types Of Health Insurance
People generally have three types of health insurance available for their health insurance policy: Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and High Deductible Health Plans (HDHPs). HMOs are the most well known types of health insurance, providing comprehensive coverage at reasonable rates and having small co-payments for basic and preventative care. The choice of which doctors and hospitals to visit will be limited to those registered with the HMO’s network and you must designate a primary-care physician who will determine your level of care and when a visit to a specialist is warranted.
PPOs are another common type of health insurance. These policies allow you to choose from a variety of network providers and pay a small co-payment for their services. You may also go outside of the network for services and have a percentage of the cost for your service reimbursed, typically around 60% to 70% of the cost. You are not required to get a referral from your primary-care physician to see a specialist with a PPO plan, but it is recommended so that all of your care can be coordinated.
HDHPs are the newest entrant into the health insurance market. These health insurance policies are linked to a health savings account or a health reimbursement account that uses pre-tax income to pay for health services, supplies, and medications. HDHPs are similar to PPO insurance policies but the deductibles are often much higher. These plans are commonly offered as an alternative to employer sponsored HMO or PPO plans.
How To Choose A Policy
It can be difficult to choose which health insurance policy will be best for you and your family. If you currently have a physician that coordinates your health care, you should find out which types of insurance they accept so that you can continue your care with that physician. It is also important to determine which types of coverage your family needs and whether it would be cost effective to add dental insurance or vision insurance to your policy. After determining what coverage is needed, you should obtain quotes from several different insurance companies (if not obtaining insurance through your employer) to determine which companies offer the best prices on their insurance premiums.