While choosing any insurance, one must remain cautious, and when it comes to health insurance, make sure that you are aware of the types of health insurance policies. For any average person, a rushing visit to the emergency room or an appointment with a doctor is a monthly or bi- monthly affair. It is always beneficial to have a financial back up when it comes to matters as serious as one’s health.
Knowing quite well that the expenses of good quality medical help, like any other facility these days, are sky rocketing, it is not for everyone to have large sums of money always at the ready to be used during unforeseen medical emergencies. Therefore, one should explore the types of health insurance policies available, and select that which is suitable to one’s needs.
Under the indemnity types of health insurance policies you can choose any doctor for your health care requirements. There are certain customary charges for each medical service or procedure. You will be required to pay the whole amount at the time, and later the insurer will provide you with reimbursement. The insurance company will only pay a certain portion of the customary charges. In most cases, the companies pay 70%- 80% of the charges, whereas the rest of it has to be paid by the user. If your doctor charges you more than the customary charges, then the extra amount too has to be paid by you.
HEALTH MAINTENANCE ORGANISATION
HMO types of health insurance policies require you to choose a network of health care providers that are affiliated with your insurance company. Under the network, you choose a practitioner, preferably a general physician who will coordinate your health care. In order to visit a specialist within the network, you need to obtain a referral from your coordinator. You will not have to pay for each service. There is a set premium, which covers a wide range of health care services.
PREFFERED PROVIDER ORGANISATION
PPO plans are a mix of Indemnity and HMO. These types of health insurance policies require you to choose a network of health care providers, but within that network you are free to visit any doctor. Neither do you require a coordinator, nor any referrals. You are also allowed to visit a doctor outside the network, but then the insurer will pay only 70%-80% of the charges.
POINT OF SERVICE
POS plans provide services similar to the HMO as well as the PPO plans. It depends on whether you are taking healthcare within or outside the chosen health care provider network. The co-payments and co-insurance within this plan also depend on these factors.
HEALTH SAVINGS ACCOUNT
HSAs, also known as catastrophic types of health insurance policies are for those who wish to have large amounts saved up for the times of tragic medical emergency. Minor charges of time- to- time visits to doctors are not covered. The monthly premiums might be lesser than other plans, but the annual deductibles are relatively higher.