Types of Health Insurance

Major Medical: With this plan, you would be the insurance would cover bills and you would be responsible for the remaining 20%. You have the freedom to go to any hospital or doctor’s office for treatment, pay the bill yourself to the care provider, and then be reimbursed for 80% of it by the insurance company. Or you have the option to sign a release instructing the insurance company to pay the care provider the 80% directly and then you would pay the remaining 20%.

HMO

An HMO, Health Maintenance Organization is a type of insurance that focuses mainly on long-term care and would generally be less expensive. Costs are kept down by limiting the choices of physicians only within a network and not covering unnecessary services. Each patient would have a primary physician and they would coordinate care if it was required.

PPO

A PPO, a Preferred Provider Organization works in a similar way to an HMO where there is a network of physicians, however, the insured is not limited to this network and can see any doctor they choose. In the instance of seeing a network doctor, co-payments and deductibles will be higher, if the charges are higher than that of an in-network doctor the additional cost would be at the cost of the insured as the insurance company will still only pay in-network charges.

POS

A POS, Point of Service, is considered a combination of a PPO and an HMO. The insured will choose their primary physician and all care should start with consulting this physician. The physician will refer the insured to a specialist in or out of the network. If the insured chooses to see a specialist without the referral of their primary physician the insurance company can and may refuse to pay for treatment or services.

Related Posts

Medical Insurance

Medical insurance is an important form of financial protection that helps people manage the cost of eligible healthcare services. Medical treatment can sometimes be expensive, especially when…

Whole Life Insurance

Whole life insurance is a type of permanent life insurance designed to provide coverage for the policyholder’s lifetime, as long as the policy remains active and its…

Family Life Insurance

Family life insurance is designed to provide financial protection for loved ones if an insured family member passes away while the policy is active. Families often have…

Senior Health Insurance

Senior health insurance is an important type of health coverage designed to help older adults manage medical expenses. As people get older, regular health checkups, medicines, hospital…

Individual Health Insurance

Individual health insurance is a type of health coverage designed for one person. It helps protect an individual from the financial burden of medical expenses caused by…

Health Insurance Benefits

Health insurance provides financial protection when a person needs medical care. Healthcare expenses can sometimes become difficult to manage, especially when hospitalization, surgery, or long-term treatment is…