Health insurance is something that everyone should have in case of illness or accident. However, it’s hard to keep up from down with all the rules and regulations that go along with having insurance. Because they are practically a necessity in our modern world, you should know all the types of health insurance available to you!
Types of Health Insurance Available
The most common types of health insurance can be made available through your employer, through a private company, as well as through a government agency. So whether you’re preparing financially for a new baby, or simply wanting to get your annual check-ups covered, you need to know all of your resources. Here is a great breakdown of all of the most popular health insurance options.
Indemnity Health Insurance
Indemnity health insurance plans are great for people who prefer to pick their own providers. With indemnity coverage, members can practically create their own health care and go to any doctor or hospital. Not to mention the insurance company then pays their previously agreed upon percentage of the overall bill.
However, with indemnity coverage, as with all coverage, there are certain down sides. For instance, you may be expected to pay for certain appointments, or procedures out of your own pocket first. You will then have to submit your payment to the insurance for reimbursement. This may mean you are out that amount for an extended period of time.
The perks of having indemnity insurance:
- Affordable Premiums
- Apply for coverage at anytime
- Often get prescription discounts
- Cash payments for qualifying accidents or severe illness
The downside of indemnity insurance:
- Not a lot of options for pre-existing conditions
- General illnesses, as well as pregnancy may not have benefits
- Only receive benefits for specific incidents
Preferred Provider Organization plans are probably the most common type of insurance on the market right now. The PPO plans allow for you to be covered by certain medical facilities, doctors, or even hospitals within your preferred providers list. The company that provides your plan will include a list of certain medical professionals that they will cover during your time under their plan.
Claims tend to be paid at higher levels with PPO plans. However, if you receive care outside of your designated providers, then you may be looking at a large bill! All in all, it’s a great coverage plan for anyone who is willing to stick within the list of designated doctors and medical professionals.
The pros of PPO Insurance:
- Higher claim payouts
- Lots of different options for levels of coverage
- Lower premiums
- A lot more difficult to be denied coverage for pre-existing conditions
The cons of PPO Insurance:
- Selections of doctors and providers limited
- Often comes with strings attached to employers
- Higher premiums without going through employers
HSA-Qualified Health Insurance
All things considered, an HSA-Qualified plan is basically a PPO plan that uses a health savings account (HSA). This specially provided bank account makes it easy for consumers to save money for medical expenses, as well as pay for larger health related bills. Not to mention the money is put aside without taxation, until it is used to pay for your health coverage.
All in all, this is an excellent option for people who are willing to pay a bit more monthly in order to have access to a savings account just for medical bills! You won’t have to worry about finding the funds to pay deductibles, or even larger copays. These types of health insurance options can be beneficial, but also have their downsides!
An HMO is a Health Maintenance Organization. Altogether, HMO plans provide a large array of coverage with health care providers who agree to work solely with that HMO. Overall, this means that your network of medical professionals work exclusively through your insurance company. Not only that, but those who go through an HMO generally pay a lot less up front.
However, in order to see specialists for your specific health needs, you will have to go through a primary care physician. Overall, not TOO big of a deal, but it does lead to longer times between needing a specialist, and actually getting in to see them. With lower payments monthly, as well as lower deductibles, this plan is great for budgets that save you money daily!
The plus side of HMO’s:
- Lower Deductibles
- Lower monthly premiums
- Some plans have no deductible
- More personal care with Primary Care Physician
The negative side of HMO’s:
- Longer time to wait to see specialists
- Smaller physician networks
- Treatment out of network means you typically pay 100% of the bills
Finding the Types of Health Insurance that Works for You!
There are of course MORE types of health insurance out there for you to research. However, these are the most common options on the market today. Whether you’re looking for full coverage of incidents only, or need something with lower deductibles, these types of health insurance can help you get what you want! Know all of your options so that you can be prepared for anything concerning your health.