When it comes to health plans, there are two basic types. There is a managed care plan and a fee for service plan.
Managed care plans include the following types of policies:
- Point of Service (POS)
- Preferred Provider Organization (PPO)
- Health Maintenance Organization (HMO)
No matter the type of policy purchased, for the most part, it can be bought as part of a group plan and as long or short-term coverage; however, it can usually be purchased as an individual plan too.
Fee For Service
Generally, the most popular type of health coverage plan is fee-for-service policies. These types of plans provide policyholders with a very large choice of doctors to receive services from, they cover basic care expenses, and some policies even cover major medical costs. When a person obtains a fee-for-service plan, he or she pays a premium, usually on a monthly basis, and then receives discounts on many types of doctor visits and services. Typically, policyholders must pay a deductible before the coverage kicks in, and depending on the policy, a coinsurance has to be paid sometimes even after the deductible has been paid. For the most part, most fee-for-service policies cover 80% of qualified medical expenses, leaving policyholders responsible for the remaining 20%.
HMO
HMO plans are commonly referred to as prepaid plans. They cover almost all basic medical expenses, such as doctor visits, emergency care costs, lab work and an assortment of therapy services. People who have an HMO plan usually are responsible for paying a copay each and every time they visit a doctor's office. HMO plans usually have a limited choice of doctors. In fact, many times, the insurance provider itself picks the doctor that a policyholder must obtain services from. Two of the most advantageous reasons to obtain an HMO policy is that it will usually cover preventative care expenses and it has a low of pocket cost.
POS
A POS plan is very similar to an HMO policy. The main difference is that POS plans usually cover a wide range of services from doctors who are not in the insurance's network of doctors. A POS plan usually has very low copayments, with some plans having no deductible at all. The main disadvantage of POS plans is that they are usually accompanied with extremely high monthly premiums.
PPO
PPO plans are comprised of two types of policies:
- Fee for service
- HMO plans
PPO plans are usually limited by the doctors who are covered; however, the policyholders can choose which doctor they want to visit; this is unlike HMO plans where the insurance companies choose the doctor. Some PPO plans allow subscribers to visit a doctor who is out of the insurance's network, but a fee must be paid. Due to the reimbursement procedures involved with PPO plans, they usually have a large amount of paperwork that must be submitted before services are covered.
Importance of Health Coverage
Without health insurance, people will often find their selves financially burdened by medical expenses. The best thing a person can do to combat overwhelming medical costs is to purchase a health insurance plan from a trusted insurance company.
- Point of Service (POS)
- Preferred Provider Organization (PPO)
- Health Maintenance Organization (HMO)
No matter the type of policy purchased, for the most part, it can be bought as part of a group plan and as long or short-term coverage; however, it can usually be purchased as an individual plan too.
Fee For Service
Generally, the most popular type of health coverage plan is fee-for-service policies. These types of plans provide policyholders with a very large choice of doctors to receive services from, they cover basic care expenses, and some policies even cover major medical costs. When a person obtains a fee-for-service plan, he or she pays a premium, usually on a monthly basis, and then receives discounts on many types of doctor visits and services. Typically, policyholders must pay a deductible before the coverage kicks in, and depending on the policy, a coinsurance has to be paid sometimes even after the deductible has been paid. For the most part, most fee-for-service policies cover 80% of qualified medical expenses, leaving policyholders responsible for the remaining 20%.
HMO
HMO plans are commonly referred to as prepaid plans. They cover almost all basic medical expenses, such as doctor visits, emergency care costs, lab work and an assortment of therapy services. People who have an HMO plan usually are responsible for paying a copay each and every time they visit a doctor's office. HMO plans usually have a limited choice of doctors. In fact, many times, the insurance provider itself picks the doctor that a policyholder must obtain services from. Two of the most advantageous reasons to obtain an HMO policy is that it will usually cover preventative care expenses and it has a low of pocket cost.
POS
A POS plan is very similar to an HMO policy. The main difference is that POS plans usually cover a wide range of services from doctors who are not in the insurance's network of doctors. A POS plan usually has very low copayments, with some plans having no deductible at all. The main disadvantage of POS plans is that they are usually accompanied with extremely high monthly premiums.
PPO
PPO plans are comprised of two types of policies:
- Fee for service
- HMO plans
PPO plans are usually limited by the doctors who are covered; however, the policyholders can choose which doctor they want to visit; this is unlike HMO plans where the insurance companies choose the doctor. Some PPO plans allow subscribers to visit a doctor who is out of the insurance's network, but a fee must be paid. Due to the reimbursement procedures involved with PPO plans, they usually have a large amount of paperwork that must be submitted before services are covered.
Importance of Health Coverage
Without health insurance, people will often find their selves financially burdened by medical expenses. The best thing a person can do to combat overwhelming medical costs is to purchase a health insurance plan from a trusted insurance company.