Understanding the Different Types of Health Insurance Plans
Choosing a health insurance plan offers many challenges. What plan do you choose? How much will it cost? Go for the higher or lower deductible option?
Most importantly, will my family get the coverage we need from the plan. The world of health insurance is full of questions and options. As a consumer, paying those hefty premiums, you need to make well-informed decisions.
You need to consider the types of health insurance available to you and which will be the best fit for your family. Read on to consider some important questions related to choosing the best type of health insurance for your family.
Types of Health Insurance
At first glance, it can seem there are as many kinds of health insurance as brands of cars or types of ice cream. It is important to dig into the types of insurance. How is the coverage different? What do you as the consumer get from that coverage?
The main types of insurance include:
- HMO or Health Maintenance Organization
- PPO or Preferred Provider Organization
- EPO or Exclusive Provider Organization
- POS or Point of Service Plan
When considering the types of insurance that fits your needs, take into account the following:
- Network vs out-of-network coverage
- When referrals are needed, especially for seeing a specialist
- Deductible rates
The instinct is to grab the health insurance option that is the cheapest. While we all want to save money whenever possible, cheapest when it comes to health insurance might not always be the best option.
You need to consider how your family uses the insurance. Consider your anticipated needs. Do you regularly see specialists as part of your health needs?
You can get plans with much higher deductibles for less money. If you never meet the deductible are you saving any money in the long run. How often do you get prescriptions and are they standard low-cost scripts or more expensive specialty scripts?
Your insurance person should help you to evaluate these questions and guide you to a plan that best meets your needs and budget.
Health Insurance Requirements
The Affordable Care Act, which became law in 2010, changed the rules for health care for Americans. The ultimate goal being that all Americans could be covered.
The rules have changed over time since its inception. Congress changed the mandate requiring you to have insurance. You will no longer be fined for not having insurance from the federal government.
However, there are several states that still require you to be covered with health insurance. The states still mandating health insurance are:
- California
- Massachusetts
- New Jersey
- Vermont
Washington, D.C. also requires its residents to be covered by some type of health insurance.
Finding Health Insurance, What to Consider
Insurance companies offer what is called open-enrollment periods. This is a window of time allotted for you to buy or make changes to your policy coverage.
You can get your coverage through your work if it is offered. You can also obtain coverage through the government-run marketplace which offers a variety of options for coverage. You can also get your insurance from directly by seeing your insurance company or broker.
Best Types of Health Insurance Options
Choosing health insurance is complicated. It can also be overwhelming to wade through the information related to all the policy options. It’s important to learn about the types of health insurance to make an informed decision.
If you want help finding health insurance that will best meet your needs, contact us today. We can help you wade through the information and get the best coverage available for you.
