There are many options available for Americans seeking healthcare insurance. The easiest way for someone to comparison shop is to get health insurance quotes. This is the best option at saving money and time before you go with what your employer has to offer. Some employers offer subsidized group health insurance as a benefit for their employees, but many people have to buy their own health insurance. Every consumer should consider the different types of available healthcare insurance before deciding which type is best for them.
Health Maintenance Organizations (HMOs)
HMOs are a type of managed care rather than traditional health insurance. The advantages of HMOs are that they cover health screenings, routine doctor visits and many prescription drugs. They also cover most of the cost of hospitalizations. The major disadvantages of HMOs are that members are assigned to a primary care physician and the primary care provider must make all referrals to specialists. Members can only see doctors within the plan and must use approved hospitals. HMOs provide good comprehensive coverage, but limit members’ choices for healthcare providers.
Preferred Provider Organizations (PPOs)
PPOs allow members more options than HMOs, but the co-payments may be higher if members choose a doctor who is not a preferred provider. Preferred providers have an agreement with the insurer to provide certain services at set rates while doctors outside the plan may charge higher rates for the same services. Members are responsible for the additional charges as well as the standard co-payment. Under most PPOs, members may see a specialist without a referral if he or she is a preferred provider. As a rule, PPOs provide prescription drug coverage and may include a dental and vision plan.
Traditional Healthcare Insurance
Traditional healthcare insurance has a deductible which must be met before the insurer will pay any medical costs. In most cases the insurer reimburses the policyholder for 80% of medical bills over the amount of the deductible. Optional coverage, like prescription drug coverage, may be offered at an additional cost. Policyholders may choose any provider who accepts their insurance, but the costs paid by policyholders are usually more than the co-payments of HMOs and PPOs. Coverage and premiums may vary widely between insurance companies.
Catastrophic or Major Medical Healthcare Insurance
Major medical healthcare coverage is similar to traditional healthcare insurance but has a much higher deductible, usually between $1000 and $5000. Like traditional insurance it covers 80% of most medical expenses over the deductible, but it may have coverage limitations for doctor visits and prescription drugs are usually not covered if they are administered outside of a hospital. The high deductible results in lower premium costs than other types of healthcare insurance, but the policyholder has a lot of out of pocket expense before the insurance coverage starts.
Consumers should consider their needs and the needs of their family when deciding which type of coverage is best for them. Even if a group plan is offered by an employer, it may not be the right plan for every employee. Comparing coverage and costs can help individuals decide which type of insurance offers the most advantages for their situation and lifestyle. We recommend getting as many health insurance quotes as possible from as many companies as you can to make sure you are getting the best coverage at the right price. We even make that easy for you, simply check out our health form at the top of this page and we will be happy to provide you with multiple health insurance quotes from all the major health insurance companies out there.
