PPO? HMO? Medical savings account? Fee-for-service plan? Health insurance options can be confusing to say the least-especially for those who are looking for insurance for the first time. No kind of health insurance is perfect for every situation. The head of a household with young children will have different needs than someone who is single. Age and income also play a big part in health insurance choices. With the skyrocketing cost of health care, many employers are not able to cover their employees any more, or are choosing to offer only limited coverage. You should be aware of what your choices are for health care whether you are covered by an employer or not. One of the most restrictive types of health insurance plans is the HMO (Health Maintenance Organization.) However, it is also one of the least costly. Many employers use these for their employees. The organization works with a network of doctors and other health care professionals who may be housed in the same building. There is a set fee schedule for services and guidelines for what is and is not covered under the health insurance. Any exceptions must be approved. You choose your Primary Care Provider (PCP) from the list of approved physicians and then you can get referred to specialists. You pay a small amount called a co-pay for every visit. A PPO (or Preferred Provider Organization) is a less restrictive type of health insurance plan. You can choose your own doctor, but if they are out of the PPO network of providers you will have to pay an additional cost. You will also have a deductible to meet each year before the PPO will cover your total cost. The fee-for-service health insurance plan is the least restrictive of the more traditional health plans. You are able to go to any doctor or health care provider and you pay their fee. The health insurance will cover whatever the average cost for that service is in your area. You will pay the difference if it is more than that. So you will need to shop around for the best prices. This plan also has a deductible and you will need to meet that. After you have met the deductible you will pay a percentage of the bill. A medical savings account is perfect for those who want even more control over their health care costs and who are in fairly good health. You simply pay a certain amount every month into the account and when you need services, you draw on your account. Research health care options selectively to get the best plan for you and your loved ones. |
