Whether one is considering individual health insurance for themselves or group health insurance for their employees, a wide range of health plans are available. In this article, we'll examine four of the most popular types of health insurance plans.
1) Preferred provider organization (PPO) plans
The preferred provider organization (PPO) plan is the most popular one of the lot. People with coverage of a PPO plan need to receive medical care from hospitals or doctors under their insurance firm's list of preferred providers so that claims can be paid at the maximum level.
A PPO plan can be chosen if:
- One desires freedom to pick any doctor/healthcare facility under the insurance company's network
- One wants the choice to cover some out-of-network costs
- One wants to visit a specialist without a primary care physician's referral
2) Health maintenance organization (HMO) plans
The health maintenance organization (HMO) plan provides a selection of healthcare services via a network of providers that have exclusive contracts with the HMO or who can offer services to members. Employees participating in HMO plans will usually need to choose a primary care physician to offer a majority of their healthcare and refer them to an HMO specialist as required.
An HMO plan can be chosen if:
- One wants a plan that has no deductible (or a low one), as well as a low premium
- One needs to reduce out-of-pocket costs for prescriptions
- One is looking for a primary care physician to advocate for their medical requirements and set up referrals for them.
3)Health savings account (HSA)-qualified plans
The HSA-qualified plan is usually a PPO plan meant particularly for use with health savings accounts (HSAs). Participants can save money — pre-tax — and use them specifically for medical expenses in the future.
An HSA-qualified plan can be chosen if:
- One has an HDHP or high deductible health plan and wants help with out-of-pocket expense coverage
- Controlling when and how to save or spend money on medical expenses is a priority
- Making tax-free contributions to an account that will roll over annually is important
4) Indemnity plans
Indemnity plans enable members to manage their own healthcare and typically visit any doctor or hospital they want. A predetermined portion of the total charges is paid by the insurance company.
An indemnity plan can be chosen if:
- One doesn't wish to commit to a specific primary care physician or facility
- One desires the maximum degree of flexibility when it comes to picking the doctors and healthcare centers to visit
