Insurance companies offer different kinds of health insurance plans. Some of the most common types that you may encounter are:
· Health Maintenance Organization (HMO)
· Preferred Provider Organization (PPO)
· Point-of-Service (POS) Plan
· High-Deductible Health Plan (HDHP)
Health Maintenance Organization (HMO)
This kind of medical insurance plan allows you to take advantage of various health services by providing you with access to a network of healthcare providers and facilities. Although you might be restricted by the choice of doctors and providers offered by your insurer, you will pay lower premiums compared to other types of health insurance plans.
Preferred Provider Organization (PPO)
With this type of medical insurance plan, you have a bit of freedom to make a list of the healthcare providers that you prefer. Meanwhile, you will still have access to a network of doctors and healthcare facilities offered by the insurance company.
However, if you decide to add out-of-network doctors to your plan, you have to pay higher premiums. That is why PPO is mostly chosen by individuals who need access to specific doctors who are not part of any insurance company’s network.
Point-of-Service (POS) Plan
A POS plan has the features of HMO and PPO. This type of medical insurance plan provides you with different benefits based on whether you are going to a healthcare provider that is in or out of your insurer’s network.
The greatest benefit of POS is that you have more freedom to choose your healthcare provider than with an HMO. Additionally, if you decide to see an out-of-network doctor, you only need to file some paperwork to be reimbursed by your insurer.
High-Deductible Health Plan (HDHP)
HDHP is a type of health insurance plan that has become more popular over recent years. This medical insurance plan is mainly characterized by its higher deductibles and lower premiums.
If you have HDHP, you are entitled to open a health savings account (HSA), which you can use to pay for some of your medical expenses. The money you deposit to your HSA is also tax-free, so you can use it entirely to cover your medical costs.