Today, health insurance is a necessity. Not only is such insurance an obligation, it is also important as a preventative care. You can get the benefits of the insurance even if you are not sick. If you are, the cost you pay will be less than if you are not insured. To help you know about the insurance better, below we share four types of insurance.
#1: Preferred Provider Organization (PPO)
PPO is a health insurance plan that allows you to go to health providers that are in contract with your insurer (in-network) and health providers that are not (out-of-network). This way, you get the benefits of both. You can save money when you choose in-network health providers and will not pay the full cost when you choose out-of-network health providers.
While PPO gives you the freedom to choose in- and out-of-network health providers, the premium of PPO is typically higher than the other insurance plans. Not only that, the deductible is also lower as well. If you have a high-risk lifestyle or are planning to start a family soon, you will be allowed to meet your favorite doctor, regardless of their in- or out-of-network status. The plan will give some coverage for that.
#2: Exclusive Provider Organization (EPO)
This is a type of insurance plan where you get the benefits only when you go to in-network health providers. Unlike PPO, with EPO you pay 100% of the cost if you go to out-of-network health providers. You can get the most from this type of insurance plan if your insurer has contracts with various in-network health providers.
In terms of premium and deductibles, EPO is the opposite of PPO. In EPO, the premium is relatively lower while the deductible is relatively higher. There is no requirement to get a referral before you see a specialist in this plan. However, whether or not EPO is good depends on its in-network size. Due to this, the larger the network, the better the plan will be.
#3: Health Maintenance Organization (HMO)
HMO, as its name suggest, is mainly for health maintenance. In this insurance plan, you will have to choose a primary care provider or PCP. PCP is the health care provider where an individual must run everything through before they get to see a specialist. This insurance plan is not ideal for individuals who need to see multiple doctors.
#4: Point of Service (POS)
This insurance plan is a mix of PPO and HMO. If you choose this insurance plan, you can go to both in- and out-of-network health providers. You must also choose a PCP as well. The PCP that you have chosen will be considered as your “point of service,” whom you must run everything through before you get to see a specialist.
These are the four types of health insurance. Which one fits you most? Only you know the answer. While we don’t know the exact answer for everyone, we do know that the most fitting insurance will be the one that meets your needs. So, you should identify your needs first then decide the type based on that needs.