Choice, being one of the most essential of humans is one of the things that insurance has offered. So, for whatever reason that you are choosing insurance, you have yourself covered because of the variety of insurance available.
A proper understanding of the insurance plans that are available will definitely give you a guide to choosing the one you should go for which may meet your budget or needs.
Every insurance plan has its own specific feature which makes it unique. Sometimes, an insurer may offer different insurance plans because of the uniqueness of these plans.
One of the key pieces of information about an insurance plan that you must know is the level of coverage that a plan has in correspondence to the premium and out-of-pocket cost.
In this article, we will consider seven different kinds of insurance plans that will guide you in your decision of which insurance plan is best for you to purchase.
These are one of the health insurances that are very popular and you can purchase them because as far as this plan is concerned, most of the providers of health care will accept to give you its services but notwithstanding, it is still in your place to select a Primary care Provider (PCP) that will direct your services as long as matters concerning your health are concerned.
Health management Organizations usually cover a maximum number of preventive care which may include visits to a specialist however, this coverage is only effective when you refer someone to the insurer and as an addendum, You may have to share the cost every time you show up for a non-preventive medical visit.
And as a matter of fact, an annual deductible might apply. For families who have plans to visit their primary care doctor regularly either for checkups or other medical concerns. To ascertain the validity and ease of the HMO plans, their popularity has been on the increase since 2014.
2. Preferred Provider Organization (PPO) plans
Quite unlike the HMO plans, under the Preferred Provider Organization plans, you and your family can actually visit any provider of health care that the company’s network covers and even a specialist without having to refer anyone or be referred.
However, there may still be a copayment in the case where you have to receive any form of non-preventive medical care and you may still have to pay for deductible every year.
Usually, the people who prefer this kind of health insurance are those people who pay regular visits to specialists. The popularity of this plan however has declined since 2014.
3. Exclusive Provider Organization (EPO) plans
When you purchase this plan, you are automatically granted access to all the healthcare providers that are in the network of the Exclusive Provider Organization and this includes the specialists.
However, this plan does not except in case of emergencies, cover you in any way outside your network. This plan is best for those who do not care about the limitations placed upon them by a provider within a network and those who do not intend to coordinate their care with a primary care doctor. Since 2014, just like the HMO plans, the EPO plans have gained popularity.
4. Point of Service (POS) plans
This type of insurance plan is a crossbreed of the Health Management Organization and the Preferred Providers Organizations plans.
With this plan, you will need to choose a physician who will primarily serve as your go-to doctor for your checkups and referrals.
Notwithstanding, if you are ready to spend more out-of-pocket; usually, you will have a deductible as well as a copayment.
This plan is quite adaptable and for those who do not mind paying a bit higher in order to bask in the enjoyment of its flexible nature, it could be an awesome package.
5. High Deductible Health Plan (HDHP) plans
This type of plan cuts across most categories, some of the HDHP plans are HMO, EPO, or even PPO plans. In order for the health insurance of these plans to take effect, there is a high deductible rate that you have to meet up with.
This is the perfect plan for the set of persons that may want to save some money with monthly premiums that are low and do not have any plans of making use of their medical coverage widely.
This type of plan is often backed up with a Health Savings account (HSA) such that if you put in money for a HAS, you have the license to buy any health plan that is compatible with HSA.
6. Short-term health insurance plans
This type of insurance gives a more limited benefit than the major medical insurance but it can aid in the safeguarding of your finance, especially in cases of accidents or illness that have been covered.
The disadvantage of this health insurance plan is that it is not in line with the standard of coverage that is expected by the Affordable Care Act so, in the long run, you may be faulted for tax penalties.
Also, this plan may also not include coverage for health conditions that are already existing. The short-term insurance cannot be renewed, however.
This is a type of insurance that bears an uncertain premium cost. Its availability is both on and off the marketplace for those that are under the age of 30 and those above who have qualified for the exemption of affordability or hardship, meaning that because coverage cannot be afforded, hardship in terms of economy or other forms of hardship which may include the death of a loved one or family member, such a person is not expected to keep a health insurance coverage.