Prior to signing up for any policy, it is essential that you understand the terms and conditions of the coverage, and of course, health insurance terminology. To begin with, there are four types of plans for individuals as well as families.
1. Indemnity
An indemnity plan gives you the option of visiting any hospital or doctor of your choice. The insurance company will pay a portion of your total bill. However, you may need to pay an advance towards some services and can apply for a reimbursement from your health insurance provider, later. This type of plan is generally more expensive, and will suit you if you want to the preference to choose doctors, and have the ability to pay upfront, if necessary.
An indemnity plan gives you the option of visiting any hospital or doctor of your choice. The insurance company will pay a portion of your total bill. However, you may need to pay an advance towards some services and can apply for a reimbursement from your health insurance provider, later. This type of plan is generally more expensive, and will suit you if you want to the preference to choose doctors, and have the ability to pay upfront, if necessary.
2. Preferred Provider Organization or PPO
This plan covers medical care by a list of health care providers enlisted with the insurance company. PPO is the most popular plan and is ideal if your doctor is part of this plan. However, it is important to check the list of providers prior to seeking medical care.
This plan covers medical care by a list of health care providers enlisted with the insurance company. PPO is the most popular plan and is ideal if your doctor is part of this plan. However, it is important to check the list of providers prior to seeking medical care.
3. Health Maintenance Organization or HMO
An HMO plan entitles you to seek medical care from a list of providers that contract with or agree to provide medical services to those covered by this policy. You can choose a primary care physician for most of your health care needs, who in turn may refer you to HMO specialists if necessary. Choose this plan if you agree to have your primary care physician coordinate your treatment with HMOs.
An HMO plan entitles you to seek medical care from a list of providers that contract with or agree to provide medical services to those covered by this policy. You can choose a primary care physician for most of your health care needs, who in turn may refer you to HMO specialists if necessary. Choose this plan if you agree to have your primary care physician coordinate your treatment with HMOs.
4. Health Savings Account or HSA plans
This plan involves opening a special bank account where you can deposit money to be used for future medical expenses, and save money. You earn interest on the deposit and save on taxes too. This account is similar to a 401(k) account and is normally a PPO plan with higher deductibles. HSA plans are ideal for younger individuals or if you prefer lesser premiums with higher deductibles in case of any unexpected illness or injury.
This plan involves opening a special bank account where you can deposit money to be used for future medical expenses, and save money. You earn interest on the deposit and save on taxes too. This account is similar to a 401(k) account and is normally a PPO plan with higher deductibles. HSA plans are ideal for younger individuals or if you prefer lesser premiums with higher deductibles in case of any unexpected illness or injury.
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