What Are the Differences Between Health Insurance Types?
October 4th, 2010 | Author: weissheiss
There are so many options when looking for health insurance these days. There are HMO’s, PPO’s, POS’s and other acronyms that mainly serve to do nothing but confuse us to no end. Here is a breakdown of what each of those mean:
1) HMO: Health Maintenance Organization – These plans are more affordable but that cheaper plans come with some limitations. You will have to use specific plan physicians and there will be limitations on the different procedures offered. This is a good plan if you have no planned expensive surgeries or just want something to help with regular doctor visits. These normally require a co-pay for visits and prescriptions.
2) PPO: Preferred Provider Organization – This type of plan offers more freedom to choose your own physician and a greater amount of coverage. The deductible and monthly premiums are higher than a HMO but they have better overall coverage. Most PPO’s do not require a co-pay at the time of service.
3) POS: Point of Service – This is a blending of a HMO and a PPO. Normally you can choose your own physician and your monthly premiums and payments are lower. This is a good plan to use if you need flexibility and don’t really need all the extra coverage that comes with a PPO.
There are also other types of add-ons to insurance that have to be considered:
1) Accidental Death and Dismemberment is what you get if you are concerned about something happening that can cause you to lose a limb, digit or your life. If your livelihood can be threatened by losing a body part, this type of insurance can help make sure you and your family are taken care of if something were to happen.
2) Disability Insurance helps to replace your income if you are unable to work due to a medical condition or injury.
One thing is for sure, when you are buying health insurance, be sure to ask a lot of questions and be honest about what you need.
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