Shopping for health insurance can leave us confused. It becomes more difficult when you have to choose from different insurance providers and plans. After a while, the process becomes difficult and burdensome. Finding health insurance does not have to be that way. Knowing certain basics about health insurance will give you the clarity to know the right company and insurance plan that will be best for you.
There are certain things you need to know about the different types of health insurance plan.
Health Maintenance Organization (HMO) Plans
This type of plan is used by most people. They have a low to zero deductible and the copayment are relatively very low. The monthly premium you pay gives you access to coverages such as doctor’s appointment, emergencies, tests, therapy and a host of other coverages depending on the plan you choose.
Under this plan, you are online allowed to visit doctors and other providers which are under the insurance company network. You will have to pay out of your pocket if you visit a different doctor that is outside the insurance company’s network.
Preferred Provider Organization
Under this plan, you will be able to use any of the doctors or hospitals under the umbrella of the insurance company. You will not need to choose a primary healthcare physician. Annual deductibles are required before the insurance company can pay your bills.
You may also be required to pay co-payments on some of the services provided.
Point of Service (POS) Plans
This type of service plan is a plan that combines a managed care plan that is a hybrid of HMO and PPO plans.