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Affordable Health Insurance Options
Today, there are more options than ever before in health insurance ...
... and for many people the options that are available have made it even more difficult to make an informed decision regarding which type of health insurance best suit their needs.
One way to begin making that decision is to understand the different types of insurance available and the features that are common to each type.
Family Health Insurance Plans
The most popular type of health insurance is referred to as group health insurance.
This type of insurance is usually offered through a business to their employer and dependents, such as a spouse and children. At one time, the only type of health insurance that was available to such groups was known as indemnity or pay for fee health insurance.
This type of health insurance has traditionally been the most expensive choice ...
... and the price tags attached to the premiums were often a deterrent for many families who simply could not afford it.
In recent years, there have been a number of new options offered in health insurance that have made it easier for many people to get affordable health insurance, but increased the difficulty in making a decision because of the wide array of options offered.
Even though it tends to be more expensive, a fee for service health insurance plan is still a popular choice because it allows so much flexibility and freedom of choice.
Under this type of plan, a participant can choose to go to any doctor or hospital, without any financial penalties or ramifications.
The fee for the services provided by the provider is arranged between the provider and the insurance company. In exchange for coverage, the participant pays a monthly premium as well as an annual deductible.
While there are no penalties for choosing to go to a provider outside an established network, the fee for service health insurance plan may not cover some services and typically places the burden of completing claim forms on the participant.
Health Maintenance Organization - HMO
An HMO, or health maintenance organization, is a much more affordable option for many families than a fee for service or indemnity plan ...
... however there is far less choice offered.
The fee arrangements are similar with the participant paying a monthly insurance premium, along with copayments.
Depending on the plan, the participant may or may not be subject to an annual deductible.
HMO’s have received a bad reputation in the past because of the fact that very little choice is given to the participant in decisions regarding which providers they prefer to use. The most common feature to an HMO is that participants are required to choose among providers within a defined network.
Care that is provided by physicians and hospitals outside that network most likely will not be covered by the HMO health insurance plan.
Most HMO’s also require participants to select a doctor to serve as a primary care physician.
This physician will be responsible for providing the majority of the participant’s medical care and if a specialist is needed, will make the referral. While there is definitely less flexibility offered with an HMO, the more affordable prices and the fact that there are no claim forms to complete, make this type of health insurance plan an attractive option for many people.
Preferred Provider Organization - PPO
Individuals who would like to combine the best features of the pay for service health insurance plan and the HMO can find a happy medium with the preferred provider organization.
With a PPO the participant may select doctors and hospitals that are outside the ‘network’ and still receive some coverage ...
... but it will usually be at a reduced coverage rate.
Participants in a PPO typically receive a card similar to participants in an HMO which allows them to receive care and services without having to complete lengthy claim forms.
The differences between the various types of health insurance plans, particularly the advantages and disadvantages, often receive a significant amount of press.
However, it’s important for individuals to realize that only they can make the decision regarding which plan is the best option for them and their situation.
It is important to weigh all of the options, advantages and disadvantages and ultimately decide what is most important to them.
To find out more about health insurance take a look at our frequently updated health insurance articles.
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Legal Disclaimer The information contained in this web site is for educational purposes only and is not intended to medically diagnose, treat or cure any disease. Consult a health care practitioner before beginning any health care program.
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