As of 2019, more than 26 million Americans do not have health insurance coverage. If you’re currently uninsured and looking for the best health insurance policy available to you, it helps to have a better understanding of your options.
Well, you’ve come to the right place for guidance.
Read through this short guide to learn more about the different types of health insurance policies so you can choose the best option for you and begin to prioritize your own health and wellness.
Preferred Provider Organization (PPO)
When you choose a PPO plan, you’ll have access to a network of healthcare providers, so you can make the choice about which ones to visit. This is a popular plan since some people may already have a doctor they like and would prefer to keep seeing.
However, you’re not totally limited to only using in-network providers if you choose a PPO option. You’re free to work with out-of-network healthcare providers, but you’ll have to pay additional costs out of pocket for the treatments you receive. If you want to keep your healthcare costs lower, then you need to choose an in-network doctor instead.
Health Maintenance Organization (HMO)
Similar to a PPO plan, when you choose an HMO, you’ll have a local network of participating healthcare professionals that you can choose from. But, unlike a PPO plan, you won’t have the option of choosing an out-of-network provider except in rare emergency situations.
HMO plans also require you to choose a primary care provider from their network, so you have a physician that can provide a referral for you to in-network specialists as needed.
While HMO plans are more limiting in who you can see for treatment, they also tend to be less expensive, so keep that in mind when you’re deciding on a smart health insurance policy that fits your budget.
Point of Service Plan (POS)
A POS plan is kind of like a combination of PPO and an HMO. Like with a PPO plan, you’ll have a network of providers to choose from, but it’s usually a smaller network. Like an HMO plan, the costs are usually lower than a PPO and you’ll be required to get a primary care provider in order to qualify for a plan.
However, if you need to see a specialist, you can look for an out-of-network option, like you would be able to with a PPO.
When you turn 65, you’re eligible for Medicare, which is a federal health insurance program. If you’re under 65, you may also qualify for Medicare if you have End-Stage Renal Disease or certain disabilities. Medicare Part A helps to cover inpatient hospital stays, Medicare Part B helps to cover doctor visits and outpatient care, and Medicare Part D helps to cover the cost of prescription drugs.
You can help fill in the gaps in Medicare coverage by opting for Medigap, which is a supplement insurance option to help keep you in optimal health as you get older.
Understanding the Different Types of Health Insurance
After reading through this brief guide, we hope you have a better understanding of the different types of health insurance available to you. Don’t put off getting the coverage you need!
Interested in reading more like this? Check out our full collection of articles before you go.