The 4 Most Common Kinds of Health Insurance

There’s no doubt that every American needs health insurance plans in some capacity. Even healthy people could have a tragedy occur at any time. For instance, the National Highway Traffic Safety Administration’s data shows that 37,462 people died in 2016 on U.S. roads, up from 35,485 in 2015 as a result of car crashes, and so many more people were injured. In the event of a car crash, severe fall accident, or any type of unforeseeable injury or illness, health insurance is absolutely essential. In order to know your options for coverage, here are the four most common types of health insurance plan.

  1. PPO
    PPO, or Preferred Provider Organization plans are the most popular. PPO insurers have a list of preordained hospitals, doctors, and treatment centers that people who carry this type of insurance can visit and receive treatment at the highest claims payout level. Employees who carry this health care insurance can, of course, seek treatment outside of the insurer’s network, but treatment will be partially covered if it’s covered at all.
  2. Indemnity
    Contrary to PPOs, indemnity plans give policyholders the freedom to choose whichever doctor they’d like. The insurance company will pay a set amount for each treatment, but might require upfront payment from members that they will later reimburse.
  3. HSA-Qualified
    HSA stands for Health Savings Accounts. These are kind of like a combination of a 401k and a savings account in that you can put pre-tax money into them, then withdraw that money as medically necessary. HSA-qualified health insurance combines this type of account with a PPO plan.
  4. HMO
    Health Maintenance Organization insurance companies contracts medical professionals to exclusively work through their company, and accepts doctors that agree to provide services to HMO policy holders. If you go with an HMO, you will need to choose a primary care physician to handle the majority of your medical needs.

There are pros and cons to each of these health insurance strategies. Getting the coverage you need is a very personalized choice you must make. It will be contingent on you out of pocket and monthly budgets, as well as any pre-existing conditions you might have. To get an idea of your insurance rates, contact your provider today for a quote.

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