What is Health Insurance?
Health insurance, known as medical insurance is a type of insurance coverage that essentially covers medical and surgical expenses, as a result of sickness or injury. Helps protect the insurance against financial losses that could be caused by expensive medical treatment.
Health Insurance Types
Health Maintenance Organizations (HMOs)
- HMO is a type of managed care organization.
- With an HMO you must choose a Primary Care Physician (PCP) from a network of local healthcare providers. This is the doctor that you will see when you need medical care. A network is a list of doctors, hospitals, and other health care providers that provide medical care to members of a specific health plan. If you use a doctor or facility that isn’t in the HMO’s network, you may have to pay the full cost of the services provided.
- HMO members usually have a primary care doctor and must get referrals to see specialists within the HMO’s network.
Preferred Provider Organizations (PPOs)
- PPO plan offers a network of healthcare providers you can use for medical care.
- PPO plan does not require you to choose a Primary Care Physician (PCP).
- You can visit any doctor without a referral at anytime.
- On a PPO you have a choice of getting care within or outside of a provider network. With PPO you may use out-of-network providers and facilities, but you’ll have to pay more than if you use in-network ones.
- A PPO Health Insurance plan provided more choices when it comes to your healthcare.
High Deductible Health Plan (HDHP)
- High Deductible Health Plans typically feature lower premiums and higher deductibles than traditional insurance plans.
- If you have an HDHP, you can use a health savings account to pay for qualified out-of-pocket medical costs. This can lower the amount of federal tax you owe.
Catastrophic Health Insurance Plan
- A catastrophic health insurance plan covers essential health benefits but has a very high deductible. This means it provides a kind of “safety net” coverage in case you have an accident or serious illness.
- Catastrophic plans usually do not provide coverage for services like prescription drugs or shots.
- Premiums for catastrophic plans may be lower than traditional health insurance plans, but deductibles are usually much higher.
Contact us to learn more about the right health insurance for you.