Types of Health Insurance | Know the Difference

Know the Key Differences Between Types of Health Insurance

Finding the right medical coverage can be a confusing and overwhelming process for many people. Understanding the basics differences between types of health insurance plans can help you get started on choosing the plan that best suits your needs.

Health Maintenance Organization (HMO)

Managed care plans offered by HMOs offer lower costs by requiring a more narrow selection of medical care provider and forgoing deductible requirements. Under an HMO-based plan healthcare individuals are required to select a primary care physician within an approved network.

Preferred Provider Organization (PPO)

Plans offered by a PPO are generally a good choice for those who need a plan that provides greater flexibility. Under a PPO-based plan individuals can get coverage while visiting a doctor or hospital out of network, and will not need a referral in order to see a specialist. However, coverage rates will generally be higher for care received out of network.

Health Savings Accounts (HSA)

These types of health insurance plans offer individuals a way to save money for potential medical costs without worrying about taxes. In order to qualify, however, you will typically need to have a high-deductible policy and no health coverage outside the plan. This type of insurance is suited for small businesses looking for a cost-effective option, with coverage focused on emergency and catastrophic medical bills rather than ongoing care.

Exclusive Provider Organization (EPO)

EPO-based plans also require that care be received in-network, excepting emergency medical treatment. The primary difference between HMO and EPO coverage is that individuals do not need to select a primary care physician, and are responsible for selecting doctors and hospitals within the approved network.

Fee For Service (FFS)

As with classic indemnity insurance, FFS plans require that individuals cover the initial payment for any medical costs. Once a claim has been filed and reviewed the insurance provider should remit an agreed upon amount.

If you are still feeling uncertain about the types of health insurance coverage will work best for you, it can be a good idea to consult with an insurance expert who can help to assess your needs.