If you are reconsidering your health care plan or you are searching for a new policy, it is important to know different types of health insurance plans. Knowing their rules, costs, and what they cover will enable you choose the right health insurance plan. Here are 10 different types of health insurance.
1. Health maintenance organization (HMO) plans
HMO is a popular health plan because it is usually less expensive for the insurance. The costs can be reduced through a negotiation with a specific health provider. However, you are required to visit their hospitals and their doctors, or use certain providers if you want your claims covered.
2. Preferred Provider Organization (PPO) plans
This type of health insurance shares some similarities with HMOs. You can negotiate with a healthcare provider for lower healthcare costs. Most people prefer PPO over HMOs because it allows freedom of choice. You can visit any doctor or hospital to get medical care for a subsidized fee. PPOs have negotiations with several doctors and hospitals which forms the PPOs network.
3. Point of service plans
This plan has features of both PPOs and HMOs. However, under this plan, you can go within or outside the POS network. If you choose a doctor within the POS network, all the costs are covered. However if you choose a doctor or a hospital outside the network, you will have to pay part of the bill.
4. Indemnity Plans
This plan allows you to visit the best hospital or the best doctor available. The hospital will submit a bill to the insurance company to claim the medical fee reimbursement. The major parts of the bill are reimbursed by the insurance company and the minor parts are to be paid by the individual. Most of these plans offer a lifetime benefit.
5. Health savings account
This is an account that allows you to save some money for present or future medical expenses. Saving your money in a health saving account is a good way of cutting taxes because it is not taxed. The health benefits include catastrophic health, child checkups, reimbursement on hearing aids and damaged eye glasses, and traditional health checkups sometimes.
6. Catastrophic health insurance plan
This health plan protects people from paying high medical fees in case of an accident or in case of a very serious illness. The individual will have to pay some premiums which are not very expensive. However, you will only be covered for all major illness but not general checkups and medicine costs.
7. Child health insurance programs (CHIP)
CHIP offers free or low health cost for children up to the age of nineteen. Children belong to families whose combined income is less than $50,000 a year. Individuals should be green card holders of a particular country. Though the scheme differs from state to state, the common benefits include immunizations, lab, dental care, checkups and x-ray services.
It is a health insurance plan administered by the government to disabled, children and pregnant women with very low income. The plan covers HIV protection, dental care and numerous preventive measures.
This is a health program that provides insurance to the elderly and disabled persons regardless of their income level. A person who is above the age of sixty five, or someone who is disabled is eligible for MEDICARE benefit. However, a person has to pay a monthly premium of around $100 during his or her working days to enjoy this plan in his or her old age
10. Managed care
Managed care plan is a network of few doctors, clinics and hospitals. You are required to visit clinics, doctors and hospitals in their network for reimbursement to happen.