According to the U.S. Census Bureau, more than 90% of people have health insurance coverage at this time. That is a much higher percentage than in past years.
But it’s worth noting that not everyone has the same type of health insurance. There are actually quite a few different health insurance coverage types.
If you have one of the many health insurance plans that are out there, you should be familiar with which type of health insurance coverage you have. It’ll help you figure out what is and isn’t covered under your current health insurance policy.
Today, we’re going to run through some of the different health insurance coverage types to give you a better understanding of them. Continue reading to learn more about the health insurance coverage types so that you’re able to sign up for the one that will benefit you the most.
Preferred Provider Organization (PPO) Plan
Preferred provider organization plans are the most common of all the health insurance coverage types. These are the health insurance plans that most Americans have at this moment.
When you have a PPO plan, you’ll need to obtain medical care from doctors and hospitals that are on a list provided by your insurance company. Otherwise, you might have a tough time getting your claims approved by your health insurance company later on.
The good news for those with a PPO plan is that you’ll be able to choose from a wide range of doctors and hospitals. Those with a PPO plan will also usually be able to see approved specialists within their network without having to get a referral first.
But the one big drawback associated with PPO plans is that they tend to be on the more expensive side. You’ll tend to have higher premiums with PPOs, and you’ll also have a higher deductible that you’ll need to pay.
It might make you feel like you’re working for a medical billing company at times. You’ll need to try to keep the financial aspect of your PPO plan in good order.
Health Maintenance Organization (HMO) Plan
PPO plans are some of the most common health insurance plans. But health maintenance organization plans have also become popular over time. There are tens of millions of Americans who rely on HMO plans every year.
When you have an HMO plan, you will usually need to pick out a primary care physician in your area from an approved list of names that your insurance company provides. You will also need to have your PCP refer you to any specialists that they think you might need to see.
Because of the way in which HMOs work, you won’t have much flexibility when it comes to picking out doctors and hospitals. You’re going to stick to only using those doctors and hospitals approved by your HMO unless you want to have all your medical claims denied.
But the thing that many people like about HMOs is that they tend to be a lot more affordable than PPOs. Both their premiums and their deductibles should cost you a lot less than the premiums and deductibles associated with PPOs.
Those with HMOs also typically spend less on prescription drugs than those with PPOs. This will be a big benefit for anyone who has been prescribed multiple medications in the past.
Health Savings Account (HSA) Plan
Technically, health savings account plans are PPO plans at their core. But there is something important that sets them apart from traditional PPO plans. Those who have HSA plans have health savings accounts that can be used for their medical expenses.
A little bit of money is taken out of each of their paychecks—pre-tax—and placed into their health savings accounts. They can then utilize these health savings accounts to pay for things like doctor’s visits and prescriptions.
People who have HSA plans often like the fact that they can take some control over what they’re spending on their medical expenses. They also like that they can buy a wide range of health-related supplies with the money in their health savings accounts.
But oftentimes, those with HSA plans will have high deductibles that they’re subjected to. They’ll have to pay them before their insurance companies will kick in and help with medical expenses. It can put them in a position where they have to pick and choose which medical procedures they want to have done based on their financial health.
The other three health insurance coverage types listed here have one thing in common. People will be at the mercy of their health insurance companies to some degree when it comes to getting medical care with them. There will be times when they won’t be able to get certain types of medical care because their health insurance company says so.
Indemnity plans offer people the most freedom as far as getting medical care is concerned. Those with indemnity plans can visit any doctors or hospitals that they want and get any medical care that they feel they need.
This is all great for those with indemnity plans…except that it will come at a cost! Indemnity plans are the most expensive health insurance plans out there. They also sometimes put people in a position where they have to pay for medical care themselves upfront.
They will be able to seek reimbursement from their insurance companies later. But not everyone is going to have the money to be able to take this approach to getting medical care.
Which of These Health Insurance Coverage Types Would Be Your Best Choice?
Now that you know more about the different health insurance coverage types, which of them do you think would work best for you? That’s the question that you’ll need to ask yourself before signing up for a health insurance plan.
You should consider everything from your age and your current health conditions to your family’s health history and your income before settling on one health insurance coverage type over all the rest. It’s important for you to pick a health insurance plan that’s going to provide you with the coverage you need at a price you can afford.
Get more useful health insurance tips and tricks by browsing through some more of our blog articles.