Health Insurance: Types and Plans

According to the National Coalition on Health Care, roughly 46 million Americans do not have health insurance, as of 2007. Today, people increasingly find they either have to go without health insurance or have to purchase their own policy.

While the thought of purchasing your own health insurance may make you cringe, the thought of going without it should make you cringe even more. Not having insurance in place could mean financial ruin, if something happen to you. It could even lead to hardship if something as minor as a broken arm or a bout of food poisoning sends you to the nearest emergency room. This is one area in life that you need to fit into your budget, as painful as it may seem at first.

Affording Coverage

In all likelihood, if you place your family on a budget, you can fit health insurance coverage into your plan. In order to find a policy that you can afford, start by gathering some health insurance quotes. When you get the quotes, you may initially find some of the information a bit confusing. There are several main kinds of insurance plans. Here are the basics about each of them:

• Health Maintenance Organization (HMO) – With an HMO, you pay a monthly premium and get a list of coverage services in exchange. In addition, there is usually a small co-pay for doctor visits. This type of plan has a network system, whereby you have to select a primary doctor from within their preferred network. If you go to a doctor who is outside of the network, they may not cover the expenses. They also usually require you to obtain a referral before seeing a specialist.
• Preferred Provider Organization (PPO) – This type of company has entered into an agreement with a group of doctors or hospitals so that they receive discounted rates. Because of this, you will need to go to those select professionals in order to have your expenses covered. If you go outside of the network, you may have a portion of your expenses covered. They also have a small co-payment per visit, and you may also have a deductible to pay.
• Point of Service (POS) – This is similar to the HMO, yet it will allow for some coverage if you go see a specialist without having first gotten a referral to do so.

Options Galore

In addition to the most common types of plans, you can also get health insurance quotes for limited benefit plans. This is beneficial if you just want to make sure you are covered for major medical emergencies, or are seeking a secondary or co-insurance policy. Such options include coverage for accidents, hospitalization, or disability insurance.

Spending some time now to research policy options and make sure you and your family are covered can bring you peace of mind, and it can literally be a lifesaver in time of need.