The 5 Main Types of Medical Health Insurance

Understanding the 5 major types of medical health insurance

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In the United States, there are five main types of health insurance currently available. These include traditional health insurance; preferred provider organizations also known as PPOs; point-of-service plans or POS; health management organizations or HMOs; and health savings accounts or HSAs. http://cheap-insurance-companies.com

With traditional health insurance, the insured person pays the insurance company a premium every month. Then, if the person has an accident or illness, they see a doctor of their choice and pay a deductible amount and possibly an office visit or prescription co-payment amount, while the insurance company covers the rest of the bill. http://cheap-insurance-companies.com

PPOs are similar to traditional health insurance but they have a list of medical "preferred providers" for the insured person to choose from in order to receive care at the cheapest out-of-pocket rate.

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Limiting the physicians and hospitals covered in by the PPO health plan allows the insurance company to control their costs to some extent, resulting in lower premiums.

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The insured person can, however, receive care from a doctor or facility that is not included on the PPO list if they choose. However, in that case the insured person would have to pay almost all of the medical costs themselves, with only a small percentage being covered by the insurance company. http://cheap-insurance-companies.com

POS plans require the insured person to have a primary care physician who provides referrals for specialists. For example, if the insured person needed to see a cardiologist, they would first visit their primary care physician for an initial diagnosis and then receive a referral to a specialist for a more thorough testing and treatment. http://cheap-insurance-companies.com

For more information about POS plans and the other types of medical health insurance plans, as well as tips to save money on your health insurance premiums, please visit http://cheap-insurance-companies.com

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