The world of health insurance can seem confusing and daunting. If you are looking for the best plan to protect your health, you might be wondering, “What types of health insurance are there?” There are some key distinctions you should know before you pick a plan.
One of the most common types of insurance is a Fee-for-Service policy, or an indemnity plan. As the name suggests, your fee-for-service insurance company will pay the fees for the medical services that you seek after you submit reimbursement forms. These plans are great if you need flexibility because they allow for a great deal of freedom when selecting the healthcare provider that best suits your medical needs.
As you are investigating what types of health insurance are there, you may find yourself familiar with the acronym “HMO,” but unsure of what it stands for. “HMO” refers to “Health Maintenance Organizations.” If you choose this type of plan, you will have access to a network of specific doctors that provide healthcare for members of your HMO, including someone who will become your primary care physician. HMOs are a very affordable option. You can pay a monthly fee to your HMO that can cover the cost of medical services so that you only have to worry about your co-pay upfront.
Another type of health insurance plan is the “PPO,” or the “Preferred Provider Organization” plan. With a PPO plan, you can get your favorite doctor on a list of preferred providers, making your treatment with him or her eligible for coverage. Even if your doctor is not on your PPO’s list, you can still seek treatment with him or her and have the cost partially covered.
Now you have answered the “What types of health insurance are there?” question! As you continue to learn more about your healthcare options, be sure to remember that all insurance policies require you to pay premiums, co-pays, and deductibles. With that in mind, you can move forward and select the best plan for you.
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