The discussion on different types of health insurance is becoming crucial because the expenses are increasing more than the rate of inflation. Therefore, it is a must for everyone to get insured so you do not deplete the emergency funds unexpectedly. It will lead to better savings and a relaxed trip to the emergency room. You are more prepared to take yourself or a family member to the doctor.
What is Health Insurance?
Health Insurance is an official policy that offers instant financial release when you are stuck in a medical emergency. Insurance is a contract between a client and the insurance company. A medical emergency can occur for many reasons, such as an accident, injury, or illness. If you do not have medical insurance, all expenses will be borne by you.
Health insurance must be an important element of financial planning. For example, you can purchase insurance early to get a procedure you have always wanted, such as a tummy tuck. Click here on how to get the procedure covered by the insurer. Regardless, you must take insurance seriously to avoid high premiums and medical tests.
The guide below talks about numerous types of health insurance and the policy factors. You can learn about them in detail to discover the most complimentary path for your physical well-being.
The Primary Types of Health Insurance
Health Maintenance Organizations
One of the types of health insurance that is most used is Health Maintenance Organization. Medical assistance involves offering services to clients from a pre-approved list of insurance providers. Unfortunately, the insurance type does not accept care beyond its scope until it is a life-or-death emergency. Even then, the paperwork is quite draining.
You must be employed or work in an HMO service for the insurance to cover you. In addition, you will need a primary care provider with referrals to a specialist who will diagnose you. These Health Maintenance Organizations are very detailed. In some cases, you might have to pay for a visit to the care provider or a specialist. There are no deductibles.
Pros
- The HMOs are probably the most budget-friendly option than anything on the list.
- The primary care provider will direct your treatment without foreign influences.
- HMOs offer excellent quality medical care
Limitations
- Unfortunately, not many medical experts are part of the HMO network.
- You cannot visit a specialist without a reference.
- Lastly, the emergencies constitute some conditions.
Preferred Provider Organization (PPO)
Preferred Provider Organization is also included on the list of types of health insurance. It is an insurance plan for families and individuals. PPO network consists of medical professionals that the provider hires on contract. As a result, the practitioners and healthcare facilitators offer services to them at a discounted rate. The client will receive the maximum benefits when the visiting professionals are included in the network.
How does PPO work?
Preferred Provider Organizations consist of primary doctors, healthcare physicians, hospitals, and other experts. They are hired via contract to offer their services. PPO plans have different fees, which vary according to the experts and facilities. However, the rates are still lower than market practices.
You will notice PPO is expensive when it comes to insurance premiums. Deductibles are high as well. Thankfully, you can trade plans, so insurance planning is flexible.
Pro
- The clients have a better variety in contrast to picking HMOs.
- You do not need a referral to see a specialist.
Limitation
- It is more expensive than HMO in certain particulars.
Point of Service Plan
Let’s continue discussing the types of health insurance with Point of Service or POS. Insurers advertise their POS plans because of their endless benefits. POS advantages vary if the clients opt for in-house practitioners rather than out-of-network experts.
A POS combines the features of Health Maintenance Organizations and Preferred Provider Organizations. However, POS holds a smaller share of interest for clients in the insurance market.
How does POS work?
Point of Service works similarly to the HMO planning. The client can choose the primary doctor. On the other hand, they can attain referrals as well if they wish to see a specialist. A POS is like a PPO because it covers services that are beyond the network. However, the client will have to pay more than if they are choosing in-network physicians.
A point of service is expensive if the primary physicians refer the client to see an expert who is out of the scope of the policy. The PPO premium falls in between the insurance mentioned above types. It is lower than HMO but higher than PPO.
In addition, the Point of Service insists that the client copays for their appointment. The in-network consultation ranges from $10 to $25. There are no deductibles if the client sees an expert who is part of the POS network. The Point of Service insurance plan is nationwide, making it excellent for individuals who travel.
Pros
- The client does not need to stay in the network to seek medical assistance.
- The client can freely see other providers without additional fees.
Limitation
- The client will need a referral to see a specialist.
Obama Health Plan
If you have studied the above-mentioned types of health insurance, then you must have seen the Obama Health Plan. The Affordable Care Act helped create the health plan with certain categories. Obama Health Plan offers Bronze, Silver, Gold, and Platinum categories.
Bronze
The bronze category involves the most inexpensive premiums. However, it has the highest corresponding expenses because the deductibles reach thousands of dollars very easily. The client will pay more out of their savings compared to co-payments. A bronze plan is appropriate for individuals who rarely visit the doctor and can afford high deductibles for the worst healthcare scenario.
Silver
Silver Obama plans have a slightly higher monthly premium. Furthermore, the deductibles are less than the bronze plan but more than the Gold and Premium Plans. If you choose the Silver Obama plan, you will experience excellent cost-sharing involving payment, insurance, and deductibles.
Gold
As the name suggests, the Gold Obama Health plan has a high premium, which is paid monthly. On the other end, it offers low costs. The deductibles are benign, and you pay even less for insurance/payments. A Gold plan is the preferred choice if you visit the doctor often. Unfortunately, it will take a long time for you to reach the deductible ceiling. Subsequently, the insurance provider will cover the remaining costs.
Platinum
Platinum has very expensive premiums in Obama types of health insurance with the least out-of-pocket expenses. Since the deductibles are low, the insurance provider steps in quicker to cover up the expenses.
Other Types of Healthcare Plans
Medicare
Medicare is publicly funded and sponsored by the government. It is applicable to seniors ages 65 and older. However, it also applies to individuals with 65 age or less who have disabilities or different conditions.
Medicaid
The state regulates Medicaid. It is a governmental program that offers budget-friendly healthcare to individuals with low incomes. The eligibility for Medicaid is based on age, dependents, income, assets, and the size of the house.
COBRA
COBRA, or Continuation of Health Coverage, involves an individual to keep the employer’s health insurance when they lose group benefits. In other words, you can enjoy the COBRA benefits for a specific time if you retire, quit, or are laid off. The employee pays the premiums, and the employer keeps a close eye on the administrative expenses, making it an expensive option.
Short-term Health Insurance
Short-term health insurance is available for a limited time. It will last a few months to a year. A common example is COBRA, which allows the ex-employee to keep the coverage until they find a new job. However, you must meet the requirements to fit into all types of healthcare short-term insurance.
Pick an Insurance Plan today!
Whether you are seeking a safety blanket or suffering from a chronic condition, you need regular medication to battle the viruses, bacteria, and harmful microbes in the body. Therefore, pick an insurance plan that minimizes personal expenses. At the same time, inquire about the care, visits to the specialists, and the medical. A robust healthcare plan will boost your mental health.
