3 Types Of Health Insurance Plans And Benefits Of Each
Maybe you have never had your own health insurance plan before, or you got a new job and your employer offers different health insurance plans. Whatever the case, it's important to understand the different kinds of health insurance plans. Each type of plan comes with its own unique benefits.
To help you decide which one best suits your needs, here are three types of health insurance plans and the benefits of each.
1. PPO Plan
PPO stands for Preferred Provider Organization. If you get a PPO plan, you should use a preferred network of providers in order to get the best benefits. The providers in the preferred network are contracted with the health insurance company, which enables them to charge a discounted rate.
Some benefits of a PPO plan include:
- You can use providers that are both in and out of network.
- You'll be able to see specialists without a referral.
- You don't need to designate a primary care physician.
If you like to choose from a wide selection of providers, a PPO plan allows you to do this.
2. HMO Plan
HMO stands for Health Maintenance Organization. If you sign up for an HMO plan, you will need to designate a primary care physician (PCP). This physician oversees all of your health care and will refer you to specialists when the need arises. With an HMO, you will only be able to see providers that are in-network. There are no benefits if you go out of network, and you will be responsible for the full cost of services.
While there is less flexibility, there are some benefits to an HMO plan. These benefits include:
- You will most likely pay a lower premium.
- You will receive coordinated care.
- You will pay less out-of-pocket expenses for prescriptions.
Most HMO plans focus on preventative care, which includes routine checkups, immunizations, and cancer screenings.
3. POS Plan
POS stands for Point of Service. This type of plan includes features of both the HMO and PPO plans. With a POS plan, you'll need to choose a PCP. Like a PPO plan, you can see an in-network or out of network provider and still receive benefits. Whether you go in or out of network, your PCP needs to make a referral to see a specialist.
Some benefits of a POS plan include:
- You'll have more flexibility when choosing physicians and specialists.
- You can easily see providers that are out of network.
- You'll have low copays.
With some POS plans, you won't have to meet a deductible when you see your PCP or stay in-network.
For more information about health insurance plans, contact a local insurance provider.
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